AIG Auto Insurance Lowers Rates in New York; New Auto Insurance Rates Will Result in Savings of $6.4 Million for New York Drivers

AIG Auto Insurance today announced that it will lower auto insurance costs for more than 69,000 policyholders in New York. Beginning September 3, 2005, AIG Auto Insurance will implement a 4% rate decrease, which will lower auto insurance costs on over 105,000 vehicles and result in a savings of more than $6 million for New York drivers whose policies are underwritten by member companies of American International Group, Inc. (AIG).

AIG Auto Insurance also announced it will begin offering a new auto program effective July 5, 2005, designed to provide more competitive rates for consumers across the State of New York.

“AIG Auto Insurance remains the fastest-growing name in auto insurance because we are able to deliver responsive service at a competitive price all tailored to meet the needs of our policyholders,” said Tony DeSantis, President of AIG Marketing, Inc., the direct marketing division responsible for AIG Auto Insurance. “We appreciate the continued referrals that our New York policyholders have made to their friends and family and are extremely pleased to be able to offer our policyholders and other New York consumers a strong value at a great price.”

The state represents one of the largest customer segments for AIG Auto Insurance which provides insurance coverage for over 1.5 percent of New York drivers.

“AIG Auto Insurance is excited about our continued growth in the New York market,” continued Mr. DeSantis. “We appreciate the cooperation of the New York Department of Insurance during the filing process and look forward to continuing our long and productive relationship with New York consumers.”

American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed in the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

Insurance is underwritten by member companies of American International Group, Inc., and is subject to underwriting review and approval. The description herein is a summary only. It does not include all terms, conditions and exclusions of the policies described. Please refer to the actual policies for complete details of coverage and exclusions.