The facts about AIG, today.
On the topic of stability and solvency . . .
In contrast to the current high-level of attention given to the AIG holding company, the operations
of its insurance companies, including the personal lines companies affiliated with 21st Century
Insurance, are financially strong and continue to deliver outstanding coverage, service and payment of
claims to all of our customers. The assets of the insurance companies cannot be directly impacted by
the financial condition of the AIG parent company because these assets are protected by state laws for
the benefit of policyholders.
The sentiment about the level of stability and security of the insurance companies is shared in the
industry and by regulatory leadership:
Pennsylvania State Insurance Commissioner - Honorable Joel Ario, during testimony before
the U.S. House of Representatives - March 18, 2009
“AIG’s insurance companies remain strong, in part because state regulation continues
to wall them off from the high-risk activities . . . ”
Standard & Poors Financial Services, LLC - Rodney Clark, Managing Director, during
testimony before the U.S. House of Representatives, March 18, 2009
“S&P believes that AIG’s insurance subsidiaries are currently well capitalized to meet
their policy obligations. The strength of the subsidiaries is a positive factor in our view
of AIG’s overall creditworthiness.”
California Departement of Insurance Commissioner - Steve Poizner, September 17, 2008
“The financial issues all come from the parent company, AIG, not the subsidiary insur-
ance companies. The AIG-affiliated insurance companies remain solid. We will continue
to monitor these companies for any changes in their financial condition.”
New Jersey State Department of Banking and Insurance Commissioner -
Steven M. Goldman
“The problems that have arisen are with the AIG holding company, which is federally
regulated and not an insurance company. The state-regulated subsidiaries are solvent
and doing quite well.”
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Continued from page 1
National Association of Insurance Companies - Therese M. Vaughan, Ph.D, CEO
“In uncertain times, making correctly informed financial decisions is more important
than ever. This is ESPECIALLY true for AIG’s policyholders, where unsubstantiated
information and misstatements in the media have led to unnecessary consumer
frustration and fear.”
Pennsylvania State Insurance Commissioner - Honorable Joel Ario, during testimony
before the U.S. House of Representatives - March 18, 2009
“In summary, the reason the federal government decided to rescue AIG WAS NOT
because of the insurance companies, which are stable and well capitalized. ”
National Association of Insurance Companies, September 16, 2008
“We have a very strong message for consumers: If you have a policy with an AIG
insurance company they are solvent and have the capability to pay claims. Our job
is to ensure that they continue to have the ability to pay.”
New York State Insurance Commissioner - Eric Dinallo, September 22, 2008
“AIG’s insurance companies are financially sound, with substantially more assets than
they need to pay all valid present and projected claims. ”
New York State Insurance Commissioner - Eric Dinallo, as quoted by the Honorable
Joel Ario, Pennsylvania State Insurance Commissioner, during testimony before the U.S. House of
Representatives, March 18, 2009
“. . . the insurance companies are the bars of gold within the AIG conglomerate ”
New Jersey Department of Banking and Insurance, March 2009
“Your insurance and annuity policies are written by AIG’s insurance companies. Those
companies are financially strong and their assets are protected by state regulators.”
Pennsylvania State Insurance Commissioner - Honorable Joel Ario, during testimony before
the U.S. House of Representatives - March 18, 2009
“Insurance is a promise to pay, often many years, even decades, down the line.
Companies must be well capitalized to ensure that they can pay claims. That is why
state regulators require insurance companies must be well capitalized to ensure they
can pay claims.”
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Steps underway for separation from AIG.
The formation of AIU Holdings, Inc . . .
AIG recently announced the formation of a separate general insurance holding company called AIU
Holdings, Inc. This organization will include many of the key property and casualty groups, including
21st Century Insurance. This move will more clearly demonstrate the value of these businesses
while positioning them to be separately governed and independently run companies.
AIU Holdings, Inc. will be a unique, leading franchise with more than 44,000 employees and 500
products and services serving 40 million commercial and individual customers in 130 countries
and jurisdictions.
In addition, the company will also include:
• 90 years of underwriting experience
• Exceptional claims and litigation management abilities
• Excellent financial strength ratings from the principal ratings agencies
• $43 billion in equity at December 31, 2008
What the rest of the world says about AIU Holdings . . .
Dow Jones, Inc., March 4, 2009
“. . . the new unit’s capital structure wouldn’t be tied to AIG . . . Eventually, the new
unit would raise capital through a public share offering or by raising private capital,
though the new unit doesn’t currently need capital and carries no debt of its own.”
John Wicher and Associates, Inc. - John Wicher
“It seems to me to be all positive. Isolating the insurance company appears to be a
very sensible way of overcoming concerns . . . and creating a crisp market identity,
separate and distinct from the holding company.”
Business Insurance, “AIG’s Property/Casualty Operations Set to Turn a Corner,” March 9, 2009
“These have been greeted as good things for a company that has attracted the
world’s attention and more of its share of criticism for getting into financial trouble.”
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The transition to the 21st Century Insurance brand . . .
As of January 5, 2009, the Personal Lines Division of AIG changed its brand name to
21st Century Insurance and Financial Services (21st Century Insurance). The new brand name
is an already well-established and respected name in the insurance industry. This transition will allow
the insurance companies to operate and market its robust business within a more positive sphere. The
insurance companies of 21st Century Insurance are also part of the newly formed AIU Holdings, Inc.
Some facts about 21st Century Insurance . . .
►
At 21st Century Insurance, we are committed to putting our customers first by providing outstanding
coverage and service. We substantiate that commitment with the following facts:
►
9th largest auto insurance provider in the United States.
►
More than 4 million vehicles insured.
►
In 2008, had 300,000 dispatches for roadside assistance.
►
Excellent financial strength ratings, according to leading independent ratings agencies.
This includes an “A+” rating from AM Best.
►
We are one of three national auto insurance companies to be recognized J.D. Power
and Associates for delivering “An Outstanding Customer Experience.”*
We paid out nearly $2 billion dollars in claims over the past year.
It is important to clarify that although the insurance companies affiliated with the 21st Century
Insurance brand are subsidiaries of AIG, they have not accessed or needed any of the Federal Reserve
borrowings to fund their operations. Nor have they received any capital contribution from any AIG
company to support their operations. Compensation paid to employees of the businesses comprising
21st Century Insurance is different from that of other AIG divisions. We made the decision to forgo any
merit increases and performance bonuses for 2009 across all levels of our organization.
21st Century Insurance is an organization of 6,500 employees whose mission is to
deliver outstanding value and service for our customers’ auto insurance needs – a
mission we are striving to achieve every day.
Insurance provided through 21st Century Insurance and Financial Services or in Michigan through 21st Century Insurance Agency, Wilmington, DE, dba for AIG Marketing, Inc., managing general agent for
the personal lines insurers of American International Companies.
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* For J.D. Power and Associates Certi ed Call Center Program information, visit www.jdpower.com
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