AIG Prices Offering to Sell Its Ownership of IPC Holdings Common Shares

Aug 09, 2006, 01:00 ET from IPC Holdings, Ltd.

    NEW YORK, and PEMBROKE, Bermuda, Aug. 9 /PRNewswire-FirstCall/ --
 American International Group, Inc. (NYSE:   AIG) and IPC Holdings, Ltd.
 (Nasdaq:   IPCR) announced that AIG has agreed to sell 13.397 million IPC
 common shares at $27 per share in an underwritten public offering. The
 offering is expected to close on August 15, 2006. AIG has granted the
 underwriters an option to purchase up to 2 million shares to cover
 over-allotments, if any. Upon completion of the transaction, if the
 underwriters exercise their over- allotment option in full, it is
 anticipated that AIG will not own any shares of IPC's common stock. IPC
 will not receive any proceeds from the sale of the shares.
     The sole bookrunner for this offering is Citigroup Corporate &
 Investment Banking, and Morgan Stanley & Co. Incorporated is a joint-lead
 manager. Interested parties may obtain a written copy of the prospectus
 relating to this offering from Citigroup Corporate & Investment Banking,
 Brooklyn Army Terminal, 140 58th Street, 8th floor, Brooklyn, New York,
 11220, Attention: Prospectus Department; telephone: 1-877-858-5407.
     This communication shall not constitute an offer to sell or the
 solicitation of an offer to buy these securities, nor shall there be any
 sale of these securities in any state in which such offer, solicitation or
 sale would be unlawful prior to registration or qualification under the
 securities laws of any such state.
     About AIG:
     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 on the New York Stock Exchange, as well as the stock
 exchanges in London, Paris, Switzerland and Tokyo.
     About IPC:
     IPC Holdings, Ltd., through its wholly-owned subsidiary IPCRe Limited,
 provides property catastrophe reinsurance and, to a limited extent,
 aviation, property-per-risk excess and other short-tail reinsurance on a
 worldwide basis.
     CONTACT:    For AIG                For IPC Holdings, Ltd.
                 Joe Norton             James Bryce or John Weale
                 212-770-3144           441-298-5100

SOURCE IPC Holdings, Ltd.