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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 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 NIA representative.
Very
truly yours,
Paul L.
Gross
Chief
Executive Officer
The NIA
Group, LLC
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