AIG INSURANCE ANNOUNCES SENIOR MANAGEMENT APPOINTMENTS AT NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA.

NEW YORK, May 20, 1998 – American International Group, Inc. (AIG) has announced that John Cavoores has joined AIG’s National Union Fire Insurance Company of Pittsburgh, Pa. as President and Chief Operating Officer, succeeding Kristian P. Moor, who has been named National Union Chairman in addition to his current position as Chief Executive Officer.

Mr. Cavoores was previously Executive Vice President and Managing Director at Chubb and Son, Inc. where as Senior Officer for Chubb International he had responsibility for insurance operations outside the United States. During his twenty-year career at Chubb he was also Chairman of the U.K./Europe division, and before that was one of two Co-Chief Underwriting Officers, responsible for the Specialty Practice Groups. Mr. Cavoores graduated from The College of the Holy Cross in 1979.

Mr. Moor joined AIG in 1981 and served as President of National Union’s Management Liability division before becoming National Union President in 1995. In 1997 he was elected AIG Senior Vice President, Domestic General Insurance.

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AIG is the leading U.S.-based international insurance organization and among the largest underwriters 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.

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