1. AIG Passport SM for Directors & Officers Liability Insurance Presented by: Hano Pak, AIG March 29, 2007

2. 2 Overview Global regulatory environment intensifying D&O exposures growing worldwide International coverage issues are varied Country-specific complexities exist Solution: AIG Passport

3. 3 Global Regulatory Environment Greater cross-border collaboration among regulators Increasing sophistication of regulatory systems and governance standards Increasing number of regulatory investigations

4. 4 Growth of D&O Exposures Adoption of U.S.-style litigation and legislation worldwide International shareholder class action legislation Unprecedented marketing by U.S. plaintiffs’ bar to encourage class actions filed in Europe Increasingly large settlements against multinationals International institutional investors active in litigation

5. 5 Greater Operating Complexities Globalization adds to difficulty in operating worldwide Possible consolidation of global stock exchanges “Translating” international accounting standards and financial information from one market to another

6. 6 International Coverage Issues Indemnification rules vary across countries Insured vs. Insured Run-off requirements Civil fines Market practices Coverage-Specific Complexities

7. 7 Disadvantages of Non-Admitted Coverage Some countries require locally admitted coverage. Many countries do not have clear regulatory guidelines regarding the acceptability of non-admitted coverage. Some countries may require the local subsidiary to pay claims. If the policy is non-admitted, this can lead to unintended financial, regulatory, tax or other implications. If the local subsidiary cannot legally indemnify the individual director or officer, then the individual may be required to pay the loss. Currency restrictions may exist Operational risk of the local subsidiary for non-compliance Reputation risk of non-compliance Consult your legal, tax and/or financial experts for details.

8. 8 Solution: AIG Passport AIG Passport SM offers an efficient way for multinationals to secure D&O liability insurance aligned with local laws, regulations and customs worldwide. This includes the ability to issue locally admitted policies in over 70 countries and jurisdictions worldwide. Consult your legal, tax and/or financial experts for details.

9. 9 AIG Passport SM Process AIG companies’ underwriters can provide a single letter detailing the terms of a global D&O program, which includes the base policy and one or more locally admitted policies. The underwriter can confirm the binding of the entire worldwide program. Through a single US-based underwriting contact, AIG local offices are notified and can issue the underlyer policy to the insured’s international subsidiary or local broker as required by law. Limits can be shared with worldwide aggregate, except where prohibited (e.g., in India and Brazil) 1 Claims will be handled by local claims examiners, supported by a New York- based management team that can liaise with the subsidiary’s parent company legal team Only offered at renewal Only available on a primary basis 1 Shared aggregates require execution of an indemnity agreement. Consult your legal, tax and/or financial experts for details.

10. 10 AIG Passport SM Advantage Compliance Coverage Claims handling “Limit” Options No additional premium* *Additional premium could be assessed if additional limits are required by law or requested by the insured. Consult your legal, tax and/or financial experts for details.

11. 11 THE DATA CONTAINED IN THIS PRESENTATION ARE FOR GENERAL INFORMATIONAL PURPOSES ONLY. THE ADVICE OF A PROFESSIONAL INSURANCE BROKER AND COUNSEL SHOULD ALWAYS BE OBTAINED BEFORE PURCHASING ANY INSURANCE PRODUCT OR SERVICE. THE INFORMATION CONTAINED HEREIN HAS BEEN COMPILED FROM SOURCES BELIEVED TO BE RELIABLE. NO WARRANTY, GUARANTEE, OR REPRESENTATION, EITHER EXPRESSED OR IMPLIED, IS MADE AS TO THE CORRECTNESS OR SUFFICIENCY OF ANY REPRESENTATION CONTAINED HEREIN. Copyright © 2007.