|AIG PURCHASES 90 PERCENT STAKE IN EGYPT’S PHARAONIC INSURANCE COMPANY S.A.E.|
|NEW YORK, November 14, 2000 - American International Group, Inc. (AIG) has announced that it has purchased 90 percent of the outstanding shares of Pharaonic Insurance Company S.A.E., an Egyptian joint stock company licensed since 1993 to provide general insurance and reinsurance products and services in Egypt, including fire and related risks, marine, auto, and accident insurance coverages.|
Mounir Ghabbour will continue as Chairman of the Board of Directors of Pharaonic Insurance Company, and retains a minority interest in the company. Peter Hammer, who was most recently Regional Vice President and AIG Senior Executive in Brazil, has been named Managing Director of Pharaonic Insurance Company. Mr. Hammer joined AIG in 1963, and has served in a variety of management positions in the United States, Latin America, and Asia.
Commenting on the purchase, Martin J. Sullivan, AIG Executive Vice President, Foreign General Insurance, said, "The market for property-casualty insurance in Egypt is substantial, with considerable growth potential as the Egyptian economy continues to liberalize and expand. As a global provider of insurance and financial services, AIG looks forward to the opportunities available through Pharaonic Insurance Company to introduce new insurance products and technologies to the Egyptian marketplace."
The main branch of Pharaonic Insurance Company is located in Cairo at 44, Abdel Moneim Riyad Street, with branches in Port Said, Alexandria, El Mansoura, 6th of October City and 10th of Ramadan City.
AIG's wholly owned subsidiary, American Life Insurance Company (ALICO), has majority ownership in a life insurance company in Egypt, Pharaonic American Life Insurance Company-ALICO, that has been in operation since 1997. That joint venture with Pharaonic Insurance Company sells individual and group life insurance, personal accident insurance, and group medical and pension products.
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 and personal 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