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NEW YORK, November 26, 2001 – American International Group, Inc. (AIG), The Chubb Corporation (Chubb) and GS Capital Partners 2000, L.P. (GSCP), an investment fund managed by Goldman, Sachs & Co., announce the formation of Allied World Assurance Holdings, Ltd (Holdings) and its wholly owned subsidiary, Allied World Assurance Company, Ltd (AWAC), an operating company organized to underwrite, from Bermuda, insurance and reinsurance business worldwide.

AWAC will underwrite, from Bermuda, worldwide commercial property and casualty insurance and reinsurance, property catastrophe treaty reinsurance, as well as certain specialty lines. The insurance and reinsurance written by AWAC will be sold through qualified insurance brokers and reinsurance intermediaries. AWAC intends to commence operations no later than December 3, 2001 in order to meet the demand expected in the January renewal period.

Holdings has total equity capital of approximately $1.5 billion. AIG contributed approximately $291 million and Chubb and GSCP each contributed approximately $250 million of the equity capital, with the remaining amount contributed by outside investors.

AIG Chairman and CEO, M. R. Greenberg, will serve as the Chairman of the Board and Chubb Chairman and CEO, Dean R. O’Hare, will serve as Deputy Chairman of the Board. Affiliates of Swiss Re Capital Partners are also investors in the company, with Walter B. Kielholz, Chief Executive Officer of Swiss Reinsurance Company, joining the company's Board of Directors. Michael I. D. Morrison will serve as President and Chief Executive Officer and as a Director of the company.

Commenting on the formation of AWAC, M.R. Greenberg said, “Insurance markets have experienced unprecedented demand for a number of coverages, without which businesses cannot operate prudently. AWAC will supplement existing market capabilities and capacity, providing a broad range of insurance coverages worldwide for businesses that have large and complex risks. In Michael Morrison, we have a seasoned industry executive, with unparalleled knowledge of the global insurance marketplace. Along with his team of senior underwriters, Mike will serve AWAC’s clients well.”

Dean R. O’Hare said, “Many companies in the United States and around the world already are finding it difficult to purchase the insurance and reinsurance they require to mitigate complex risk exposures. With the January renewal season upon us, this problem is only expected to worsen. By bringing together substantial underwriting resources with a solid capital base, AWAC will help to provide a viable solution.”

“AWAC represents an important new pool of liquidity in the insurance market. Given the strength of the management team and of our founding partners, we look to AWAC to be a leader in supplying complex business risk coverage”, said Richard Friedman, Managing Director and Head of the Principal Investment Area at Goldman Sachs.

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AIG is the leading U.S.-based international insurance and financial services organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write a wide range of commercial, personal and life insurance products through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG’s global businesses also include financial services and asset management, including aircraft leasing, financial products, trading and market making, consumer finance, institutional, retail and direct investment fund asset management, real estate investment management, and retirement savings products. American International Group, Inc.’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

With more than $25 billion in assets, The Chubb Corporation is a holding company for a family of property and casualty insurance companies known informally as the Chubb Group of Insurance Companies. Members of the Chubb Group of Insurance Companies provide property and casualty insurance for personal and commercial customers worldwide through 5,000 independent agents and brokers. Chubb’s global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia. More information on the company can be found at http://www.chubb.com.

Goldman Sachs & Co. is the primary subsidiary of The Goldman Sachs Group, Inc., a leading global investment banking and securities firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world. GSCP is the current primary investment vehicle of Goldman Sachs for making privately negotiated equity investments. GSCP was formed in July 2000 with total committed capital of $5.25 billion, $1.5 billion of which was committed by Goldman Sachs and its employees, with the remainder committed by institutional and individual investors.