AIG UNITED GUARANTY LAUNCHES AIG UNITED GUARANTY INSURANCE (ASIA) LIMITED

HONG KONG — AIG United Guaranty¹ today announced the formation of AIG United Guaranty Insurance (Asia) Limited (AIGUGI) as a wholly owned subsidiary of the corporation, incorporated and licensed in Hong Kong.

AIGUGI provides mortgage guaranty insurance and other financial products to mortgage lenders in Hong Kong and other markets in the Asia-Pacific region. Mortgage guaranty products provide loss protection to lenders and investors in the event of borrower default on residential mortgage loans. Home ownership studies show that loans with limited down payments have an increased likelihood of default, particularly in periods of severe or prolonged economic distress. As housing finance systems develop throughout the world, credit risk for low-down-payment mortgages is a major challenge in expanding home ownership.

“We are very excited about the opportunities we see with our enhanced ability to provide services throughout the region,” said Chris Wei, chief executive officer of AIGUGI. “We have substantial expertise and experience in mortgage insurance and are committed to expanding our operations in Hong Kong, Australia, South Korea, Japan, India, and other high-potential markets in the region.”

“The introduction of mortgage insurance and mortgage guaranty products will allow increased home ownership opportunities through greater borrower access to low-down-payment mortgages,” Wei added. “We believe this will allow the company to maximize long term opportunities in the Asia-Pacific region through providing flexible, market-leading mortgage insurance products and services that meet the financial needs of our mortgage lending partners.”

The company is also pleased to announce that it was assigned an insurer financial strength rating of AA, with stable outlook, by Standard & Poor’s. (For more information on the rating, please contact Standard & Poor’s at www.standardandpoors.com.)

About AIG United Guaranty

United Guaranty Corporation (AIG United Guaranty) and its subsidiaries are member companies of American International Group, Inc. (AIG). The company has been headquartered in Greensboro, North Carolina, since it was established in 1963.

Subsidiaries of AIG United Guaranty provide mortgage guaranty insurance for first and second mortgages that protects against mortgage credit losses. In addition, AIG United Guaranty’s comprehensive range of financial products and services to lenders and investors includes mortgage fraud recovery services and private education loan default insurance. AIG United Guaranty’s international locations include offices in Jerusalem, Hong Kong, Taipei, Tokyo, Beijing, Seoul, London, Dublin, Paris, Milan, Madrid, Budapest, Mexico City, Toronto, and Sydney.

About AIG

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.

# # #