client advisory

First, I want to take this opportunity to wish you and your families a happy and safe holiday season. All of us at AIG Commercial Insurance are very grateful for your support and for your willingness to move past the headlines to get a better understanding of the state of our business.

AIG’s insurance companies are financially sound, with substantially more in assets
than they need to pay all valid present and projected claims, Insurance
Superintendent Eric Dinallo today reassured New York policyholders. Dinallo also
announced he would issue notices to insurance companies, agents and brokers,
reminding them of their responsibilities under New York Insurance Law to fully
inform consumers of the possible costs of switching life insurance, annuity and
other policies.

The Connector Board ratified policies to ensure
that health plans in Massachusetts meet specifics standards of health
benefits. The purpose of this memorandum is to summarize the
highlights of their decisions and to help you better understand these
decisions. These provisions take effect on January 1, 2009 except
where noted.

Thank you for your continued business and your ongoing support of AIG Private Client Group. To aid you in discussions with your customers, we have compiled the following important facts:

We certainly understand that the recent AIG news may have created concern regarding your AIG Private
Client Group insurance policies. I am confident that you have been kept well informed, thanks to our
highly professional group of agents and brokers. Still, I wanted to address you directly.
The unprecedented troubles in the credit markets have created strain on AIG’s liquidity, such that it
required an $85 billion credit facility from the U.S. Government. Rest assured, however, the issues of