|AIG AGREES TO ACQUIRE THE GE JAPAN LIFE INSURANCE BUSINESS AND THE GE U.S.-BASED AUTO INSURANCE BUSINESS|
NEW YORK & TOKYO--June 25, 2003--American International Group, Inc. (AIG) has agreed to acquire in simultaneous transactions the GE Edison Life Insurance Company in Japan and GE's U.S.-based auto and home insurance business. The value of the transaction is between $2.1 and $2.2 billion, depending on the closing date. Completion of the transaction is subject to regulatory approvals. The transaction is expected to close in the third quarter of 2003, but no later than December 31, 2003.
Commenting on the agreement, AIG Chairman, M. R. Greenberg, said, "This transaction represents a significant opportunity to expand AIG's presence in the Japanese life insurance market, the second largest in the world. GE Edison, AIG Star Life and ALICO Japan would provide AIG with the leading foreign life insurance presence in the marketplace and a strong distribution platform for serving the life, annuity, and accident and health insurance needs of this important market."
"The U.S. based GE automobile units will complement AIG's existing domestic U.S. personal automobile insurance business which is distributed through various channels," Mr. Greenberg said.
AIG Companies have been operating in Japan for more than 50 years providing individual and commercial customers with high quality insurance and financial services products. AIG's life insurance businesses operate through ALICO Japan and AIG Star Life Insurance Co., Ltd. AIG is also the largest foreign property-casualty insurance organization in Japan, operating through the Japanese branches of AIU Insurance Company (AIU) and American Home Assurance Company.
American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in approximately 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In the United States, AIG Companies are the largest underwriters of commercial and industrial insurance, and AIG American General is a top-ranked life insurer. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making. AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement savings businesses through AIG SunAmerica and AIG VALIC, and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
SOURCE: American International Group, Inc.