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AIG RISK MANAGEMENT OFFERS TWO NEW REINSURANCE FINANCING PRODUCTS TO SUPPORT CAPTIVE ASSET MANAGEMENT AND PORTFOLIO DIVERSIFICATION

NEW YORK, June 9, 1999 - AIG Risk Management, Inc. (AIGRM), a member company of American International Group, Inc. (AIG), has introduced two new products that enhance the performance of captive or subsidiary company operations.

The Captive Asset Management Program (CAMP), is a reinsurance financing program for captives that blends a guaranteed and secure rate of return on investments with liquidity to pay losses. It also incorporates both per occurrence and aggregate stop loss insurance, resulting in superior returns and improved risk management. Under the program, an AIG member company will issue a reinsurance policy to a captive, which in turn cedes to the AIG member company premiums for risks assumed by the captive from its corporate parent. All losses resulting from the ceded risks are the responsibility of the AIG member company for the term of the reinsurance. At the end of the program, if it is not renewed, the remaining fund balance, less losses paid plus interest earned, is returned to the captive.

The Risk Swap program incorporates a reciprocal exchange to diversify the captive's insurance portfolio and risk profile while allowing it to maintain the benefits of a Captive Retention Program. Under a Risk Swap program, a captive cedes an agreed upon amount of its portfolio to an AIG member company in exchange for a cession of an agreed upon portfolio from an AIG domestic insurance pool. This program enables captives to diversify their insurance portfolio between parental and third-party, non-related risks.

"AIG's CAMP and Risk Swap programs provide our clients the ability to significantly enhance the performance of their captives with the backing of one of the most financially strong companies in the world," said Charles Dangelo, President, AIG Risk Management, Inc.

For more information, contact Jerry Payne, Vice President, AIG Risk Management, Inc., at 212/458-3086 or via e-mail at Jerry.Payne@AIG.com.

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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.

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* The above described coverage may not be available in all states, and the above description thereof is neither a complete description nor a complete list of all terms, conditions and exclusions. Note that certain terms used in the above are defined in the policy. Please see the policy for a complete description of its scope and limitations of coverage. Issuance of coverage is subject to underwriting.