A.M. Best Places American Bankers Group Under Review Following Announcement of Merger With AIG.

OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 23, 1997--A.M. Best Co. has placed the ratings of American Bankers Insurance Group and its operating property/casualty and life affiliates under review with developing implications. The action follows the announcement that American International Group, Inc. (AIG) will acquire 100% of American Bankers Insurance Group's outstanding stock for approximately $2.2 billion in stock and cash. The transaction is being treated as an acquisition for accounting purposes.

A.M. Best will review the post-acquisition organization and capitalization of the American Bankers companies in question, as well as the integration of the operations into AIG. The rating will remain under review pending A.M. Best's discussions with management regarding the ongoing operations and the close of the transaction, which is expected to occur in early 1998. The transaction has been approved by the board of directors of both companies and is subject to regulatory approval and American Bankers shareholder approval.

The implications of the transaction are favorable, as it allows for product expansion and additional cross-selling opportunities for both companies. In addition, A.M. Best is awaiting further information from both companies surrounding the integration of the two operations.

American Bankers operates as an international wholesaler and marketer of specialty insurance products, predominantly in the credit life and health, property, and unemployment lines with access to financial and retail distribution channels (e.g. banks, retailers and consumer finance companies).

Currently, American Bankers Life Assurance Co. of Florida, Bankers American Life Assurance Co., and Caribbean American Life Assurance Co. are rated "A" (Excellent). American Bankers Insurance Co., American Reliable Insurance Co., Financial Insurance Exchange, Voyager Indemnity Insurance Co., and Voyager Property Casualty Insurance Co. are rated "A-" (Excellent) by A.M. Best. Voyager Life Insurance Co. and Voyager Life and Health Insurance Co. are rated "B+" (Very Good), and Caribbean American Property is rated "FPR 6".

The ratings of AIG's property/casualty and life/health affiliates are unaffected, as the transaction imposes no material impact on AIG's operating profile and overall financial flexibility. A.M. Best also believes, in addition to being accretive to earnings, this transaction enhances AIG's operating flexibility, business scope and product diversification by providing new distribution opportunities and immediate access to a broad range of specialty credit-related insurance products. A.M. Best views this transaction favorably for AIG and expects a successful integration will provide a strong complement to AIG's domestic and worldwide financial services operations. AIG is the leading U.S.-based international insurance group engaged in property and casualty insurance, life and health insurance, and financial services.

A.M. Best Co., established in 1899, is America's oldest and most widely recognized insurance rating and information source.

CONTACT: A.M. Best

Jeffrey Dunsavage

908/439-2200, ext. 5618

[e-mail]