AIG to Acquire Aurec Gold's Outstanding Interest in AIG Israel

American International Group, Inc.

announced today that it has reached an agreement with Aurec Gold Investments Limited (Aurec) to acquire Aurec's 49.99% interest in AIG Israel Insurance Company Ltd. (AIG Israel). AIG currently owns 50.01% of AIG Israel, and upon completion of the transaction AIG Israel will become wholly-owned by AIG. The transaction is subject to approval by the Israel Insurance Commissioner. AIG and Aurec formed AIG Israel in 1996 as a joint venture. The operation primarily writes personal lines as well as accident & health and life insurance through a direct distribution platform, and it encompasses some commercial lines products via brokers. AIG Israel has achieved steady growth and profitability each year since