|AIG ISSUES STATEMENT ON SECURITIES AND EXCHANGE COMMISSION CEASE-AND-DESIST ORDER|
Sept. 11, 2003--American International Group, Inc. (AIG) has issued the following statement on the Securities and Exchange Commission (SEC) Cease-and-Desist Order announced today:
The Consent Decree issued by the Securities and Exchange Commission relates to a "non-traditional" insurance product with respect to which a single insurance policy was issued in 1999 by an AIG subsidiary. AIG consented to the SEC Order to settle the matter and neither admitted nor denied the SEC's findings.
AIG acknowledges that mistakes were made in the underwriting of this policy. Consistent with its longstanding commitment to ensure that it has sound and effective internal controls, AIG has taken steps to correct those mistakes. AIG's profit from this policy was less than $100,000.
The Consent Decree does not raise any issues with respect to the manner in which AIG accounted for the transaction. AIG does not expect the terms of the settlement with the SEC to have any material impact on AIG's current or future operating results.
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.
CONTACT: American International Group, Inc. Investment Community: Charlene Hamrah, 212/770-7074 News Media: Joe Norton, 212/770-3144