|AIG RISK FINANCE AND AIG ENVIRONMENTAL TO OFFER ENVIRONMENTAL INSURANCE PROGRAMS FOR LONG -TERM CLEANUP COSTS|
NEW YORK, July 27, 1999 - American International Group, Inc. (AIG) has announced that AIG Risk Finance and AIG Environmental, divisions of the American International Companies, have combined their resources to offer Environmental Protection Programs (EPPs). EPPs utilize risk transfer and risk financing elements to manage current and future environmental liabilities related to the long-term cleanup of a contaminated site.
EPPs are designed to provide coverage for the payments associated with existing environmental liabilities in addition to the discovery of new environmental liabilities. The programs are based on finite, multi-year insurance policies, and incorporate a credit, based on good experience, that enables the insured to be rewarded for favorable loss experience. EPPs may also be used to satisfy financial assurance requirements of individual states and RCRA closure and post closure care and corrective action requirements.
EPPs can be used to insure environmental liabilities disclosed on Securities and Exchange Commission (SEC) filings; multiple party settlements of environmental liabilities, including Superfund settlements; and liabilities necessary to be quantified and capped for a merger or acquisition transaction. The programs can be designed to address environmental liabilities specific to certain cleanup situations, including closure, post-closure care and corrective action of landfills or waste treatment facilities; nuclear decommissioning; mine reclamation and utility restructuring.
Among the factors considered when developing an EPP program are the actual amount and type of contamination; the characteristics of the surrounding environment; the reliability of the selected cleanup plan; the possibility of discovering new contamination; and the willingness of the controlling government authorities to accept the cleanup as complete. In underwriting the EPPs, AIG Risk Finance and AIG Environmental will utilize the environmental engineering and consulting expertise of the Environmental Management Division of AIG Consultants, an AIG member company.
For more information on EPP programs, contact Ken Radigan of AIG Risk Finance at 212/770-7332 or firstname.lastname@example.org or contact www.aigriskfinance.com.
AIG Risk Finance is a market leader in the design and implementation of creative risk financing solutions that draw on the worldwide resources of AIG insurance and financial services companies.
AIG Environmental, writing business through member companies of AIG, is the leading provider of environmental insurance products and services.
AIG is the leading U.S.-based international insurance organization and among the largest underwriters of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial services 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.