|AIG AND CORPORACIÓN ANDINA DE FOMENTO TO FORM JOINT VENTURE TO PROVIDE POLITICAL RISK INSURANCE IN LATIN AMERICA AND THE CARIBBEAN|
|NEW YORK, March 28, 2000 - AIG Global Trade & Political Risk Insurance Company (AIG Global), a wholly owned subsidiary of American International Group, Inc. (AIG), and Corporación Andina de Fomento (CAF), a multilateral financial institution whose principal shareholders are the five Andean Community countries, have signed a joint venture agreement to establish the Latin American Investment Guarantee Company Ltd. (LAIGC). LAIGC will provide political risk and investment guarantee insurance to financial institutions and private companies operating in Latin America and the Caribbean.|
LAIGC will be based in Bermuda and owned 50 percent by AIG Global and 50 percent by CAF, with an initial paid-in capital of $50 million. AIG Global Management Company Ltd., a subsidiary of AIG Global, will provide underwriting, claims, and administrative support for LAIGC. Countries in Latin America and the Caribbean may join directly or through regional development agencies or other governmental organizations.
"LAIGC is an innovative regional solution where public and private sectors have created a means to restore investor confidence eroded by volatility and uncertainty," said CAF President Enrique Garcia. "The shareholder countries of CAF are therefore pleased that they can now provide the facilities of LAIGC to companies and financial institutions with operations in the region."
AIG Global President John Salinger said, "We are very pleased to have CAF as a partner. LAIGC unites the responsiveness, creativity and flexibility of the private sector with the resources of the public sector by providing insurance products that will allow investors and lenders in the region to manage and control their exposures."
Insurance products to be provided by LAIGC include coverages for confiscation, expropriation, and nationalization; contract repudiation; political risk for exporters and importers; wrongful calling of guarantee; and political risk insurance for projects.
AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial lines insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services and investment management businesses. 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. AIG member companies have offered political risk insurance since 1976, longer than any other private insurer.
Corporación Andina de Fomento (CAF) is a multilateral financial institution devoted to the sustainable development and the integration of its shareholder countries. Its principal shareholders are the five countries of the Andean Community: Bolivia; Colombia; Ecuador; Peru and Venezuela, as well as Brazil; Chile; Jamaica; Mexico; Panama; Paraguay; Trinidad & Tobago, and 22 private banks in the region. CAF mobilizes resources from industrialized countries to invest in Latin America and the Caribbean, building a bridge between the region and the international capital markets, and provides a range of products and services to promote investment and business opportunities.