EXHIBIT 99.1

NEWS                                                                  [AIG LOGO]

Contact:  Charlene Hamrah (Investment Community)
          (212) 770-7074

          Joe Norton (News Media)
          (212) 770-3144

          AIG ISSUES INITIAL ESTIMATE OF LOSSES FROM HURRICANE KATRINA
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NEW YORK, September 20, 2005 - American International Group, Inc. (AIG) has
issued an initial estimate of its total expected losses relating to third
quarter catastrophe events, principally Hurricane Katrina, totaling
approximately $1.1 billion after-tax.

     AIG estimates that its total after-tax insurance related losses, net of
reinsurance recoverables, to be recorded in the third quarter, will be
approximately $900 million. In addition, AIG expects to record an after-tax
charge of approximately $170 million relating to reinstatement premiums. The
$900 million estimate includes AIG's Domestic Brokerage Group (including
Lexington Insurance Company), Domestic Personal Lines business, Foreign General
operations, Domestic Life Insurance operations, AIG's prorated share of losses
from its majority ownership in Transatlantic Holdings, Inc. and Lloyd's
Syndicate 1414 (Ascot), and AIG's minority investments in Allied World Assurance
Co., Ltd and IPC Holding Ltd. In addition to insurance related losses, AIG
estimates that it will incur approximately $60 million after-tax in
non-insurance losses, primarily from consumer finance operations, investment
portfolio impairments and AIG owned and leased facilities.

     These preliminary estimates involve the exercise of considerable judgment
and reflect a combination of ground-up evaluations, modeled numbers and industry
loss estimates. Due to the unprecedented nature of this event, including legal
and regulatory uncertainty, an inability to access portions of the affected
areas, the complexity of factors contributing to the losses and the preliminary
nature of the information used to prepare these estimates, there can be no
assurance that AIG's ultimate costs associated with this event will not exceed
these estimates.

     AIG President and Chief Executive Officer Martin J. Sullivan said, "Our top
priorities continue to be to respond to our customers who have sustained a
devastating loss of life and property caused by Hurricane Katrina and its
aftermath and ensure the well being of our employees. Our employees in the
region, including many who themselves suffered as a result of Katrina, are
working diligently to provide immediate financial assistance to customers who
have experienced losses. Katrina's wake of destruction is unprecedented, but
AIG's financial strength and claims management expertise enable us to respond to
a catastrophe of this magnitude. Our hearts go out to all who have suffered from
this tragic event."

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     This press release contains forward-looking statements. Please refer to the
AIG Quarterly Report on Form 10-Q for the quarter ended June 30, 2005, the AIG
Annual Report on Form 10-K for the year ended December 31, 2004 and AIG's past
and future filings and reports filed with the Securities and Exchange Commission
for a description of the business environment in which AIG operates and the
important factors that may affect its business. AIG is not under any obligation
to (and expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information, future events
or otherwise.

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     American International Group, Inc. (AIG), world leaders in insurance and
financial services, is the leading international insurance organization with
operations in more than 130 countries and jurisdictions. AIG companies serve
commercial, institutional and individual customers through the most extensive
worldwide property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services, financial
services and asset management around the world. AIG's common stock is listed in
the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock
exchanges in London, Paris, Switzerland and Tokyo.

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