|AIG ISSUES STATEMENT REGARDING THE ACTION ANNOUNCED TODAY BY NEW YORK STATE ATTORNEY GENERAL SPITZER|
NEW YORK, Oct 14, 2004 -- American International Group, Inc. (AIG) has issued the following statement in connection with the action announced today by the New York Attorney General:
"Attorney General Spitzer announced an action against Marsh involving certain of its insurance brokerage practices. Insurance company subsidiaries of AIG have cooperated fully with the Attorney General's investigation.
"Before this investigation began, we requested guidance from the New York Insurance Department with regard to Placement Service Agreements. In July 2002, we delivered to the Insurance Department a form of a Placement Service Agreement prepared by a broker, together with that broker's disclosure to its clients; we requested the Department to review the documents and advise us whether the documents complied with the New York insurance laws, in particular Circular Letter No. 22 (1998). On October 15, 2003, we again asked for the Department's guidance on this issue.
"The New York State Attorney General's Office also announced that two employees of the Excess Casualty unit of American Home Assurance Company, a subsidiary of AIG which provides excess liability insurance to businesses, have pleaded guilty to charges in connection with their dealings with Marsh.
"We are saddened by this news because we hold ourselves to the highest ethical standards. Any breach of those standards is unacceptable.
"We take these charges seriously and will continue to cooperate with the Attorney General's office."
AIG Chairman M. R. Greenberg will hold a conference call Friday, October 15, 2004 at 10:00 a.m. EDT. The audio webcast will be available at the following URL:
A replay will be available through October 22, 2004 at the same URL.
It should be noted that the remarks made on the conference call may contain forward-looking statements. Please refer to the AIG Quarterly Report on Form 10-Q for the quarter ended June 30, 2004 and AIG's past and future filings and reports filed with the Securities and Exchange Commission for a description of the business environment in which AIG operates and the important factors that may affect its business. AIG is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
American International Group, Inc. (AIG) is the world's leading international insurance and financial services organization, with operations in more than 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 retirement services, financial services 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 services 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.
American International Group, Inc.