In line with its emphasis on Customer Care, AIA has established a comprehensive programme to resolve the Critical Year Option issue.

20 March 2003, Singapore - AIA has been serving Singaporeans for over 70 years, and we are committed to our policyholders here. We value the trust you have placed in us and we look forward to providing continued service to all Singaporeans in the future.

Recently some clients who purchased policies with a critical year option have expressed some concern and dissatisfaction over the impact to them of the critical year option. AIA is taking immediate action to investigate and resolve the situation. As the largest insurance company in Singapore, we will honour the terms and obligations for all of our policies.

This week we are initiating the following actions:

1. We are writing to all our policyholders who might have been presented with the critical year option to assure them that their questions and concerns will be answered.

2. We have launched a comprehensive customer care program to ensure that they can contact us easily.

These include:

• Customer Care Hotline - 6248 8212

• A special Customer Care Website at: www.aia.com.sg where our customers can go for information and to register their questions.

• They can call their AIA Financial Services Consultant directly.

• If our clients don’t know their Financial Services Consultant, they can call the Customer Care Hotline and ask for personal assistance.

3. AIA has met with representatives from the Consumer Association of Singapore (CASE) and explained the steps we are taking to address this situation. CASE expressed confidence in the actions we have proposed and we agreed to keep them informed in the future. They supported our customer care program and encouraged policyholders to call their AIA Financial Services Consultants or the Customer Care Hotline if they have questions.

4. We are meeting and liaising with the Life Insurance Association and the Consumer Association of Singapore to discuss this industry-wide issue.

Editor's Note:
American International Assurance Company, Limited (AIA) is Southeast Asia's largest life insurer, with branch offices and affiliated companies located in countries and jurisdictions including China, Hong Kong, Macau, Malaysia, Thailand, Singapore, Brunei, Guam, Indonesia, Taiwan, the Philippines, Japan, Korea, Australia and New Zealand. The company has been assigned “AAA” financial strength and counterparty credit rating by global credit rating service Standard & Poor's. AIA is a wholly owned subsidiary of American International Group, Inc. (AIG), the world leader in insurance and the largest underwriter of commercial and industrial insurance in the United States.

American International Group, Inc. (AIG) is the world’s leading U.S.-based international insurance and financial services organization, the largest underwriter of commercial and industrial insurance in the United States, and among the top-ranked U.S. life insurers. Its member companies write a wide range of general insurance and life insurance products for commercial, institutional and individual customers through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG’s global businesses also include financial services, retirement savings and asset management. AIG’s financial services businesses include aircraft leasing, financial products, trading and market making, and consumer finance. AIG has one of the largest retirement savings businesses in the United States and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.