A.M. Best Places Ratings of AIG Under Review With Negative Implications.

OLDWICK, N.J. -- A.M. Best Co. has placed the financial strength ratings of member companies of American International Group, Inc. (NYSE:AIG) under review with negative implications following their announcement that the Chairman and CEO, Maurice Greenberg, will retire as CEO, although he remains non-executive Chairman. Mr. Greenberg will be succeeded by Martin J. Sullivan, who had been AIG's vice chairman and co-chief operating officer. The company additionally announced that the CFO, Howard Smith, has taken leave and that the filing of AIG's 2004 10-K has been delayed. Howard Smith will be succeeded by Steven J. Bensinger. The retirement of Mr. Greenberg follows concern over an increasing number of regulatory inquiries as well as queries from the New York Attorney General and the SEC.

The vast majority of AIG's major insurance subsidiaries have held financial strength ratings of A++, A.M. Best's highest rating, for many years. There remain a number of unresolved issues with the potential for continued uncertainty. The ratings have been placed under review due to the delay in the filing, the premature retirement of two top senior executives, and the numerous regulatory inquiries. A.M. Best believes that the operating fundamentals within AIG are sound, there is significant management bench-strength among the leaders of the business segments, and barring any additional negative reports, the ability to generate historical earnings should continue. The ratings will remain under review pending A.M. Best's review of the filed 10-K as well as any further company developments.

For Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.