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AIG AND GENERAL RE ANNOUNCE FORMATION OF NEW BERMUDA-BASED EXCESS CASUALTY COMPANY

 NEW YORK, June 30 /PRNewswire/ -- American International Group, Inc. (NYSE: AIG) (AIG) and General Re Corporation (NYSE: GRN) have announced the formation of SELIC Holdings, Ltd. ("SELIC") and its wholly-owned subsidiary Starr Excess Liability Insurance Company, Ltd. ("Starr Excess"), Bermuda companies of which they are co-sponsors.
 Starr Excess will specialize in providing excess general liability insurance, excess directors and officers liability insurance, and possibly other excess insurance at high attachment points. It will offer general liability coverage in excess of minimum attachment points of $50 million, with maximum policy limits of $100 million, and directors and officers liability coverage in excess of minimum attachment points of $50 million, with maximum policy limits of $50 million. All coverage will be written on a claims-made basis.
 Starr Excess's policyholders are expected to be principally large multinational corporations and financial institutions worldwide, with its business generated primarily through brokers. Starr Excess will not conduct any business in the United States.
 SELIC has total committed capital of U.S.$500 million, U.S.$100 million of which is fully paid. The company may make additional capital calls on the investors, on a pro rata basis, up to the amount of each investor's total capital commitment. AIG holds 23.9 percent of the equity and General Re holds 10.0 percent. The remaining equity is held by a small number of domestic and foreign investors.
 Commenting on the formation of Starr Excess, AIG Chairman M.R. Greenberg said, "There exists a shortage of strong financial capacity in the property-casualty insurance market for the types of excess protection that Starr Excess intends to write, and looking to the future, this situation should intensify. Few insurers have the capacity to provide these higher limits of excess coverage at a time when large multinational corporations, both U.S. and foreign-based, are finding that the amounts of insurance they have are inadequate to meet their growing risk exposures. Starr Excess is well positioned to provide capacity to meet such market needs."
 Mr. Greenberg continued, "AIG and Gen Re are ideally suited to co- sponsor this new company. As the largest underwriters of commercial and industrial coverage in the United States and the largest excess writers in the world, AIG companies have a strong combination of expertise and knowledge of the excess casualty market, as well as unmatched global presence. Gen Re, through its principal subsidiary, is the largest professional property-casualty reinsurer domiciled in the United States. Together, AIG and Gen Re have more extensive relationships with the target market for the coverages Starr Excess will provide than any other insurance organization."
 The President and Chief Executive Officer of both SELIC and Starr Excess is Joseph C.H. Johnson, who has been an executive with AIG companies in Bermuda since 1954. Mr. Johnson is President and Chief Executive Officer of American International Company, Ltd., a position he held for 16 years. He is active in Bermuda civic and insurance affairs and was appointed an Independent Member of the Bermuda Senate by the Governor in 1988. Mr. Johnson is also a past President of the Bermuda Chamber of Commerce.
 Other officers of Starr Excess are Joseph R. Wiedemann, Senior Vice President, Marketing; Geoffrey H. Ashworth, Senior Vice President, Underwriting; and Mary E. McCoy, Vice President, Actuarial.
 Mr. Wiedemann joined the American International organization in 1983. From 1984 to 1987 he was President of Lexington Insurance Company. He was named President and Director of American Home Assurance Company in 1987 and Chairman of American Home in 1992. He was elected a Vice President of AIG in 1986. Mr. Wiedemann's insurance career began with CNA Insurance Company in 1952, where he was Senior Vice President and Director.
 Mr. Ashworth joined General Re in 1977 as a casualty facultative underwriter. In 1983 he was named casualty facultative branch manager in Seattle, and in 1986 transferred to the Dallas office in a similar capacity. Mr. Ashworth became a Vice President of General Re in 1987 and in 1990 was assigned to the New York office as casualty facultative individual risk manager.
 Ms. McCoy's insurance career began in 1980 when she joined Liberty Mutual Insurance Company as an actuary. She joined AIG in 1981 in the actuarial department and for the past five years has been manager of the actuarial department at Lexington Insurance Company in Boston. Ms. McCoy is a Fellow in the Casualty Actuarial Society and a member of the American Academy of Actuaries.
 The mailing address of Starr Excess is P.O. Box HM 152, Hamilton HMAX, Bermuda. The company's offices are located at American International Building, 29 Richmond Road, Pembroke, Bermuda. Telephone: 809-295-2121; Fax: 809-292-8085.
 AIG is the leading U.S.-based international insurance organization and the largest underwriter of commercial and industrial insurance in the United States. Its member companies write property, casualty, marine, life and financial services insurance in approximately 130 countries and jurisdictions, and are engaged in a range of financial services businesses. American International Group, Inc.'s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.
 General Re is a holding company, the principal subsidiary of which is General Reinsurance Corporation, the largest professional property- casualty reinsurer domiciled in the United States. Through this subsidiary and others, Gen Re provides reinsurance, insurance and related services throughout the United States and in more than 30 other countries.
 -0- 6/30/93
 /CONTACT: John T. Wooster, vice president, communications of AIG, 212-770-3146/
 (AIG GRN)


CO: American International Group, Inc.; General Re Corporation;
 SELIC Holdings, Ltd.; Starr Excess Liability Insurance Company,
 Ltd. ST: New York IN: INS SU:


LR -- NY066 -- 7296 06/30/93 15:50 EDT
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Date:Jun 30, 1993
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