AIU Holdings Sells a Portion of Its Interest in Transatlantic Holdings, Inc.

Move Further Advances AIU Holdings' Positioning as Independent, Global Property Casualty Company

NEW YORK -- AIU Holdings, Inc. (together with AIU Holdings LLC, "AIU Holdings") today announced that in connection with the closing of the secondary offering of Transatlantic Holdings, Inc. (NYSE: TRH) shares, it has monetized a portion of its investment in TRH, receiving cash proceeds of approximately $500 million.

The transaction demonstrates progress toward the sale of AIU Holdings' interests in TRH, and advances its previously announced strategy to sell non-core, affiliated investments. It also further positions AIU Holdings as an independent entity in preparation for the potential sale of a minority stake in the business, which ultimately may include a public offering of shares, depending on market conditions. Through its subsidiary, American Home Assurance Company, AIU Holdings continues to own 9,192,662 common shares of TRH, representing approximately 13.9 percent of TRH's common shares issued and outstanding.

Kristian P. Moor, president, AIU Holdings, Inc., said, "The TRH transaction is a meaningful step forward toward clarifying AIU Holdings' business portfolio, while improving its quality of capital to help position the company for continued success in the future."

AIU Holdings is a leading property casualty and general insurance organization serving more than 40 million businesses and individuals worldwide. With a 90-year history, more than 500 products and services, deep claims management expertise, and excellent financial strength ratings, AIU Holdings enables individual consumers, entrepreneurial businesses, and large multinationals alike to manage virtually any risk with confidence. Our insurance and risk management products and services are provided through insurance brokers, agents, and other distribution partners around the globe.

AIU Holdings is the marketing name for the worldwide property casualty insurance operations of AIU Holdings, Inc. and AIU Holdings LLC. For additional information, please visit our website at www.aiuholdings.com. In the United States, all products are written by insurance company subsidiaries of AIU Holdings, Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Certain coverage may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. Non-insurance products and services may be provided by independent third parties.