Friday, September 19, 2008

AIG Insurance

In an effort to answer your questions about AIG insurance, Phil Lomonico has provided the following information for you and your members who purchase insurance through our endorsed vendor. We hope this will be helpful and reassuring as we all deal with these rough economic times. In the unlikely event your members experience with AIG, please let us know. We will keep you updated should anything change with this matter.

NAIC Press release 9/16/08: (The NAIC is the National Association of Insurance Commissioners)

“We have a very strong message for consumers: If you have a policy with an AIG insurance company, they are solvent and have the capability to pay claims. Our job is to ensure that they continue to have the ability to pay.”

Insurance Specific:

AIG is a solid company with over $1 trillion in assets and substantial equity which back by profitable operating subsidiaries that meet or exceed local regulatory capital requirements.

AIG is committed to meeting our customer’s needs and keeping their business.

We are different from other financial institutions that have been under pressure in that we have strong, well-positioned businesses in diverse markets around the world.

The Federal Reserve Board and the Federal Reserve Bank of New York have agreed to provide AIG a two year, $85 billion secured loan to ensure the company can meet its liquidity needs.

The Federal government’s willingness to act highlights AIG’s critical role in the global financial markets.

The loan will protect all AIG policyholders, address rating agency concerns, and give AIG the time to conduct asset sales in an orderly basis.

· AIG's Property Casualty Insurance's financial strength ratings are excellent and compare favorably with most major companies including an ‘A’ (Excellent) rating from AM Best.

In addition to our commitment to meet the needs of our customers, AIG’s insurance subsidiaries are subject to regulations that include requirements to maintain adequate reserves to satisfy obligations to our policyholders, such as the ability to pay claims.

· Insurance policies written by AIG member companies are direct obligations of our related insurance companies around the world. These companies are well capitalized and meet or exceed local regulatory capital requirements. These companies continue to operate in the normal course to meet our obligations to our policyholders.