MOODY’S COMMENTS ON SEC’S ANNOUNCEMENT OF ENFORCEMENT ACTION AGAINST AIG

New York, September 12, 2003 -- Moody's Investors Service, commenting on the SEC's announcement of enforcement actions against American International Group, Inc. (AIG) and others arising from an alleged accounting fraud committed at Brightpoint, Inc., noted that it sees no evident ratings impact for AIG and its subsidiaries. According to the SEC, "The fraud charges against AIG resulted from AIG's role in fashioning and selling a purported 'insurance' product that Brightpoint used to report false and misleading financial information to the public.

Published on September 12, 2003

In settling the Commission's charges, AIG agreed to pay a $10 million civil penalty", while neither admitting nor denying the findings of fact by the SEC. The penalty reflects the SEC's finding of "AIG's participation in the Brightpoint fraud, as well as misconduct by AIG during the Commission's investigation of this matter."While the amount of the fine is non-material from a financial perspective, pursuant to the SEC order, AIG will "retain an independent consultant to make binding recommendations concerning AIG's internal controls to ensure that AIG's insurance products will not be used in the future to violate the securities laws." Moody's noted that it maintains a negative outlook on the Aaa senior unsecured debt ratings of AIG and its guaranteed subsidiaries, and that there is ongoing review for possible downgrade of the Aaa insurance financial strength ratings on members of AIG's US commercial insurance group, led by National Union Fire Insurance Company of Pittsburg, Pa., which review is expected to be concluded within the month.

American International Group, Inc. (NYSE: AIG) is a New York-based holding company for an extensive network of international property and casualty insurance, life insurance and financial services companies. AIG is among the leading underwriters of commercial and specialty lines insurance in the USA, and it is the largest U.S.-based international insurance organization. As of June 30, 2003, AIG reported total assets of $621 billion and shareholders' equity of $68 billion. For the six months ended June 30, 2003, AIG reported consolidated revenues of $39 billion and net income of $4.2 billion.

New York

Alan Murray VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York

Ted Collins
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653