AIG Canada Internal Document After Bail-Out

An important message from Peter C. McCarthy, President and Chief Executive Officer, AIG Life of Canada (Sept. 17, 2008)

Dear Valued Partner:

The recent activity in the financial markets this week has been nothing less than extraordinary. I know many of you have questions about your customers’ policies and about placing future business with AIG Life of Canada. Please rest assured that many people at our parent company AIG Inc., have been working extremely hard to improve its financial performance, which has been so adversely affected by unrealized market losses on its investments tied to U.S. housing and credit markets.

An important step in the process was to resolve AIG Inc’s short-term liquidity pressures. On September 16, the AIG Board of Directors announced it has approved a two-year, $85 billion secured revolving credit facility provided by the Federal Reserve Bank of New York. This credit facility will ensure AIG Inc. can meet its liquidity needs and is the best alternative for stakeholders, including policy holders. Further details on this announcement together with some Q&A material for your reference are included in the attachments.

and…

Financial Facts as of June 30, 2008 for the combined AIG life companies in Canada*:
Assets                                           $ 3.2    Billion
Policyholder’s & Shareholder’s Equity            $ 411.6  Million
Total Revenue (for the six month period)         $ 571.4  Million
Net Income (for the six month period)            $ 29.8   Million
*AIG Life Insurance Company of Canada and AIG Assurance Canada

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