[March 21, 2013]

AIG Introduces Collateral Flex Option, a New Risk Financing Solution for Casualty Clients in the U.S.

American International Group, Inc. (AIG) has launched Collateral Flex Option (CFO), a new risk financing solution for companies with large deductible casualty insurance programs in the U.S.

CFO provides a flexible alternative for companies that would otherwise need to tie up capital or maintain costly lines of credit to meet the collateral requirements that come with large deductible policies. The CFO option is available for a wide range of companies, including those that need it most: smaller firms that may have yet to earn an investment-grade rating.

"Posting letters of credit or other forms of collateral for large deductible insurance programs can exacerbate the challenges companies already face with tight credit markets," said Russell Johnston, Product Line Executive, US and Canada. "We're offering customers an option that did not exist before. "

CFO is available to qualified AIG clients as a way of deferring collateral requirements by up to 50% on large deductible Workers Compensation, General Liability, and Commercial Automobile Liability insurance policies, on an annual basis. Annual CFO amounts deferred for all policy periods of the company's insurance program with AIG can range from a minimum of $500,000 to a maximum of $5,000,000, subject to a limit of 50% of the insured's total annual collateral posting requirement.

"CFO is an innovative risk management finance solution for customers who want to put more of their capital at work for their business," sid Joseph A. Davide, Senior Vice President and Product Line Officer, US Primary Casualty. "This was evident in the positive feedback that we received from a diverse group of companies that took part in a recent pilot program."

For more details, please contact your AIG Regional Casualty Executive. Eligibility for CFO will be solely at AIG's discretion.

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

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AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. Products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. (AIG). Not all products and services are available in every jurisdiction, and insurance coverage is governed by actual policy language. Certain products and services may be provided by independent third parties under contract with AIG or its subsidiaries or affiliates. Insurance products may be distributed through affiliated or unaffiliated entities. In Europe, the principal insurance provider is AIG Europe Limited.

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