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March 4,
2009
Re: AIG Update
To Our Valued Clients,
In an effort to keep you informed about the evolving
circumstances surrounding AIG and its subsidiaries, we think
the following information will be of interest to you:
On
March 2, 2009, AIG announced that it had reached an
agreement with the Treasury Department and the Federal
Reserve Board to restructure the federal government’s
assistance program. The government’s press release included
this message of support: “The U.S. government is committed
to continuing to work with AIG to maintain its ability to meet its obligations as they come
due.” This course of action should strengthen AIG’s
capital base and allow AIG time to execute its plan and
benefit from future improvements in market and industry
conditions.
The AIG writing companies have retained their “A” (“excellent”)
ratings from A.M. Best, our key rating source. We will
continue to monitor developments with respect to AIG in accordance with our established internal Security
Review Committee, which develops and implements policies and
procedures regarding the financial security of insurers used
by Kornreich-NIA and its subsidiary companies.
AIG has reported that a key component of this strategy is the
formation of AIU Holdings, Inc., a general insurance holding
company that will include many of AIG’s current property/casualty operations. AIU Holdings will
have more than 44,000 employees serving 40 million
commercial and personal insurance customers in 130 countries
and jurisdictions. According to
AIG, the
insurance companies that make up AIU Holdings have
approximately $43 billion in equity as of December 31, 2008 and its commercial insurance entities hold more than
$69 billion in invested assets, with 74 percent invested in
municipal bonds.
Your policy will remain in full force and effect with claims
paid in accordance with policy terms and conditions. As all
businesses and individuals face the continued uncertain
global financial situation, we remain committed as your
insurance advisor to fulfilling your insurance needs through
a program of broad coverage at a fair price. We are always
available to review your insurance program, your exposures
to loss, and to make additional recommendations for your
consideration.
Thank you for your business. Should you have any questions,
please do not hesitate to contact your Kornreich-NIA
representative.
Very truly yours,
Paul L. Gross
Chief Executive Officer
The Kornreich-NIA Organization
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