As you know, our parent company (AIG, Inc.) is facing challenges related to the extraordinary developments in the financial markets in the past few days. AIG, Inc. is actively developing alternatives to improve liquidity to weather this difficult time for financial markets.
 
AIG Travel Guard's policies are underwritten by American Home Assurance Company and National Union Fire Insurance Company.  Both are member companies of AIG Commercial Insurance (AIGCI), whose substantial capital position is independent of its parent.
 
AIGCI companies, which include the Lexington Insurance Company, National Union and American Home Assurance Company, remain well-capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion.
 
Even if the parent company files for bankruptcy, AIGCI's capital position will remain intact and available to underwrite policies. 

* AIGCI companies, which include the Lexington Insurance Company, National Union and American Home Assurance Company, remain well-capitalized with statutory surplus of $26.7 billion and invested assets exceeding $70 billion.

* AIGCI's capital is protected by regulators, ensuring that policyholders' interests are paramount.
 
* AIG Commercial Insurance continues to exhibit strong financial performance with 2008 second quarter operating income of nearly $1 billion, net written premiums of $5.99 billion and a profitable combined ratio of 93.7%. 
 
* According David Neustadt, the deputy superintendent for public information for the New York state insurance department, "If you have a policy with AIG insurance company, they are financially strong and solvent. They have the capability to pay on any claims, and our job is to insure that they continue to have the ability to pay."

AIG Travel Guard will continue to communicate developments to you as they occur.  We want to assure you that despite the current uncertainties, AIG Travel Guard will continue to exceed your expectation with comprehensive protection and unparalleled customer service.
 
AIG Commercial Insurance companies include: AIG Casualty Company, American Home Assurance Company, American International South Insurance Company, Commerce and Industry Insurance Company, Granite State Insurance Company, Illinois National Insurance Co., National Union Fire Insurance Company of Pittsburgh, Pa., New Hampshire Insurance Company, The Insurance Company of the State of Pennsylvania, AIG Excess Liability Insurance Company Ltd., American International Specialty Lines Insurance Company, Landmark Insurance Company, Lexington Insurance Company, AIG Commercial Insurance Company of Canada, National Union Fire Insurance Company of Vermont, AIG Excess Liability Insurance International Limited
 
AIG Commercial Insurance is the marketing name for the domestic commercial property casualty insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products are written by insurance company subsidiaries of AIG Commercial Insurance Group, Inc. Coverage may not be available in all jurisdictions and is subject to actual policy language. Non-insurance products and services may be provided by independent third parties.