NEW YORK. February 23, 1998 – American International Group, Inc. (AIG) today announced that the Arizona Attorney General’s office advised Cendant Corporation that Cendant would be in violation of Arizona law if it proceeded to vote proxies being solicited by Cendant with regard to the proposed merger between AIG and American Bankers Insurance Group, Inc. (ABIG), without receiving prior Form A approval. A violation will occur if such proxies meet or exceed ten percent of ABIG’s outstanding shares. The Attorney General also stated that the failure to obtain prior approval would constitute a Class 1 Misdemeanor.
The Arizona Department of Insurance, in response to a motion by Cendant, also asserted that Cendant’s application for expedited review of its Form A Application and its motion to have its hearing consolidated with AIG’s hearing should be denied, saying there was no public interest to be served by simultaneous consideration of the two proceedings.
AIG is pleased that the Arizona authorities have taken these actions, which are supportive of the position taken by AIG on these issues.
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