AIG to Split from C.V. Starr to Create Own Marine Division

July 5, 2006

American International Group Inc., one of the nation’s largest insurers, is sparring again with its former chairman, Maurice “Hank” Greenberg.

AIG announced that it is canceling its “agency arrangement” with the American International Marine Agency, a subsidiary of the Greenberg-controlled C.V. Starr & Co. Inc., effective Dec. 31. AIMA specializes in ocean marine insurance, including cargo coverage.

AIG also said it was establishing a new division, to be called AIG Global Marine and Energy, to service the insurance, risk management and other needs of marine and energy insurance clients.

Last Friday, Starr announced that its AIMA subsidiary had notified AIG “of its intention to terminate the agency’s relationship with the (AIG) insurance company effective Jan. 1.”

Starr said in a statement the companies’ contract called for a six-month notice of cancellation.

“We look forward to serving new underwriters next year and building upon our reputation for delivering best in class solutions,” AIMA President David French said in the statement.

Greenberg was forced out of AIG in March 2005 amid a widening regulatory investigation into AIG’s accounting.

In recent months, AIG and Starr have been fighting in court over specialty insurance business that AIG underwrote for clients handled by Starr. AIG has accused Starr of trying to take its aviation, technology and excess liability customers away. Meanwhile, Starr has sought relationships with insurance companies other than AIG to underwrite new policies in these fields.

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