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AIG Creates Mortgage Portfolio Initiative

  AIG Creates Mortgage Portfolio Initiative

Connective Mortgage Advisory Company draws on AIG’s investment expertise and
United Guaranty’s mortgage insight for the purchase of residential mortgages
for investments

Business Wire

NEW YORK -- March 6, 2013

AIG announced today it has launched a new business unit called Connective
Mortgage Advisory Company (Connective). The new company, which recently
facilitated AIG’s first correspondent mortgage purchase, draws upon AIG’s
investment expertise and the experience of its mortgage insurance subsidiary,
United Guaranty Corporation (United Guaranty), to identify and buy residential
whole loan mortgages as investments. Connective is focused on identifying
residential first mortgage loans to be purchased as long-term investments for
AIG. For loans purchased as investments, AIG will manage the loan-servicing
component.

William Dooley, AIG Executive Vice President, Investments and Financial
Services, said, “Direct investment in residential mortgage loans offers
attractive investment returns and enables a proactive approach to managing
mortgage risk.”

Over the past several years, United Guaranty has been using a multivariate
risk-assessment model to determine the quality of individual loans in the
pricing of its mortgage insurance. United Guaranty is contributing deep
knowledge of the residential mortgage landscape to the Connective project.
“With the support of AIG, United Guaranty became the mortgage insurance
market-share leader with risk-based pricing products,” said Donna DeMaio,
United Guaranty’s Chief Executive Officer. “United Guaranty’s understanding of
residential mortgage markets combined with AIG’s investment expertise creates
unique new investment opportunities for AIG.”

Connective will establish correspondent relationships with lenders, underwrite
loans, and provide support throughout the loan purchase process.

All purchases will be subject to rigorous underwriting and risk management
standards. Closed loans will be purchased on a correspondent basis by the AIG
companies. There are no plans for Connective to conduct any direct lending or
securitization.

American International Group, Inc. (AIG) is a leading international insurance
organization serving customers in more than 130 countries and jurisdictions.
AIG companies serve commercial, institutional, and individual customers
through one of the most extensive worldwide property-casualty networks of any
insurer. In addition, AIG companies are leading providers of life insurance
and retirement services in the United States. AIG common stock is listed on
the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube:
www.youtube.com/aig |Twitter: @AIG_LatestNews| LinkedIn:
http://www.linkedin.com/company/aig |

AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International Group,
Inc. For additional information, please visit our website at www.aig.com. All
products and services are written or provided by subsidiaries or affiliates of
American International Group, Inc. Products or services may not be available
in all jurisdictions, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent third
parties. Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate in state
guaranty funds, and insureds are therefore not protected by such funds

United Guaranty Corporation and its subsidiaries provide innovative, quality
risk solutions that help mortgage lenders remain competitive while generating
a profitable and responsible book of business for their stakeholders. Products
include first-lien private mortgage insurance—most notably Performance
Premium^®, an industry-leading risk-based pricing option. Among United
Guaranty’s suite of loan analysis and risk management tools are indices that
measure loan risk and geographic quality. United Guaranty was established in
Greensboro, North Carolina, in 1963 and is a company of American International
Group, Inc.

Contact:

AIG
Jon Diat (Media): 917-239-9241
jon.diat@aig.com
or
Liz Urquhart (UGC): 336-333-0461
lurquhar@ugcorp.com
or
Liz Werner (Investors): 212-770-7074
elizabeth.werner@aig.com
 
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