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D.F. Dwyer Insurance
38 Bellevue Avenue
Newport, RI  02840
 
phone: 401.846.9629
fax: 401.849.4980
 
March 4, 2009
 To Our AIG PCG Clients
 
I'm sure most of you have seen the recent headlines about AIG. While most of what the press is reporting has been negative, there are some very positive developments.
 
The AIG Commercial Insurance Group, which includes our programs, has performed very well in 2008 despite the challenges of the parent company. In fact, AIG Commercial Insurance continues to outpace their peers reporting a substantial profit in 2008 as well as an increase in policyholder surplus. Today, the major rating agencies including A.M. Best, Standard & Poor's and Moody's Investors have all affirmed the ratings of AIG and its subsidiaries.
 
Reproduced below is a letter that we received yesterday from Charles Williamson-- President of AIG Private Client Group. We will continue to update you as information is received. In the meantime, please feel free to call me with any questions or concerns.
 
Sincerely,
Daniel F. Dwyer

AIG Private Client Group banner
March 2, 2009 
 
Dear Colleagues,
 
No doubt many of you saw or read the earnings announcement that your holding company released this morning. In summary, the Federal Reserve and AIG have structured an arrangement that significantly improves AIG's capital structure and protects the customers, creditors and counter parties of AIG. We will get all the details of this program out to you very quickly.
 
In this communication, I want to focus on what is important to you and me: the property casualty insurance companies. Please consider the following:
  1. All of the rating agencies have affirmed their ratings of the AIG insurance companies. You can continue to rely on our ability to pay claims and protect policyholder assets.
  2. Our insurance companies reported an INCREASE in policyholder surplus at the end of the 4th quarter of 1.14 percent! I challenge you to find another carrier with such results. This means that insurance policies you have with us are backed up by $26.6B in statutory surplus.
  3. AIG announced the intention to form a general insurance holding company, AIU Holdings, Inc., of which Private Client Group will be a part. It will be comprised of more than 44,000 employees and offer 500 products and services serving 40 million commercial and individual customers in 130 countries and jurisdictions. As you know from previous communications, our insurance businesses are financially strong and never needed - or used - government funding.

Establishing AIU Holdings will enable the following:

  1. Separate management
  2. Separate branding
  3. Separate ownership
  4. Separate capital structure and ratings

We are extremely excited about reinventing ourselves and enabling you to focus solely on the needs of your clients. All of you have been amazingly supportive over the last six months. We look forward to building a greater future with you.

More details are forthcoming, but I wanted you to be able to share information ASAP with your clients.
 
Thank you.
Charles E. Williamson
President, AIG Private Client Group