<< Back

NEW YORK, March 1, 1999 - American International Group, Inc. (AIG) has announced that AIG Otwarty Fundusz Emerytalny (AIG OFE), a newly formed pension fund in Poland, has been licensed by Poland's Board for the Supervision of Pension Funds (UNFE). AIG OFE will be managed by AIG Powszechne Towarzystwo Emerytalne S.A. (AIG PTE). AIG PTE, which received its license to manage a pension fund in December 1998, is jointly owned by AIG subsidiary American Life Insurance Company (ALICO) and its life insurance company in Poland, AMPLICO LIFE S.A.

AIG PTE will operate as a pension fund society in Poland's recently reformed pension and social security system. Under this system, workers, depending on their age, will either be required to or have the option to join 'second pillar' private pension funds by contributing a portion of their wages previously paid to the state-run social security system.

AIG PTE will canvass for members to join AIG OFE. AIG PTE, which will be based in Warsaw with 75 branches throughout the country, will reach these prospective clients through its own sales force and AMPLICO LIFE agents as well as a network of independent brokers. Tomasz Frontczak, formerly Sales Director and a member of the management board of Kraft Jacobs Suchard Poland, a subsidiary of Philip Morris, Inc., has been named President of AIG PTE.

"We are enthusiastic about the long-term growth potential of privately managed pension funds under the reforms enacted in Poland," said R. Kendall Nottingham, AIG Executive Vice President, Life Insurance and Chairman of ALICO. "The establishment of AIG PTE and the AIG OFE fund underscores our commitment to the market in Poland, where AIG has successful life and general insurance operations, and a growing consumer finance business."

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 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.