The insurer financial strength rating on AIG Life Insurance Co. of Canada, which is one of American International Group Inc.'s (AIG) operating companies, is based on AIG's extremely well-diversified business position, which is expected to strengthen further in light of constricting property/casualty capacity; a track record of excellent operating performance that should improve given significant property/casualty rate improvements; and extremely strong capitalization. These factors are partially offset by financial leverage temporarily exceeding that of the rating level. The increased financial leverage resulted largely from AIG's acquisition of American General Corp. (American General), which closed in the third-quarter of 2001, and is expected to be reduced over the short term. -- Unsurpassed franchise. The AIG organization is an extremely well-diversified provider
