9.27.2006 - 10:08am ET

(CSRwire) BOSTON, Mass. -- American International Group, Inc. (AIG) announced today at the Clinton Global Initiative (CGI) a $5.25 million, three-year partnership with ACCION International that will help ACCION deliver financial services and literacy programs to three million entrepreneurial poor in 33 countries, dramatically expanding the reach and sustainability of microfinance in emerging markets.

AIG's contribution will assist ACCION in developing a range of dynamic new initiatives and products to improve the quality, impact and reach of microfinance around the globe. ACCION innovations will extend from remittances and savings products to micro-insurance and housing loans, to include a range of products that meet the financial services needs of poor entrepreneurs, such as seamstresses, market vendors, bakers and weavers who work their way out of poverty through microfinance.

AIG's contribution will include support for the "AIG Fund for Microfinance Innovation," run by ACCION; backing for ACCION financial literacy programs; and assistance with ACCION's exploratory program work in China, where AIG was founded, in 1919.

"AIG has been following the microfinance industry for more than a decade. The time is right for microfinance to move beyond credit to provide innovative products and services tailored to the needs of poor households," said Martin Sullivan, AIG president and CEO. "Building on our proud history of investment in underserved markets, AIG's partnership with ACCION will increase the microfinance industry's capacity to reach scale, helping millions of the world's working poor lift themselves out of poverty."

Microfinance has had a significant impact since its inception, with nearly 50 million people worldwide improving their lives through microcredit - but it is estimated that nearly a billion could benefit from access to financial services. Microfinance institutions (MFIs) today are seeking to move beyond traditional credit products, expanding the range of products they can offer the working poor, and working to achieve scale to meet the enormous demand for such services. MFIs are increasingly collaborating with corporate partners whose philanthropic resources and strategic expertise can greatly facilitate product development, investment, and effective, new distribution systems, in order to achieve genuine scalability and sustainability.

"AIG's generous contribution will help us to significantly accelerate innovation in microfinance, allowing us to expand development of new microfinance programs and products around the globe," said María Otero, president and CEO of ACCION. "This important step in AIG's corporate philanthropy will help us reach millions more of the working poor with the tools they need to improve their lives and those of their families."

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 in the U.S. on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.

About ACCION International

ACCION International is a private, nonprofit organization with the mission of giving people the financial tools they need - microenterprise loans, business training, and other financial services - to work their way out of poverty. A world pioneer in microfinance, ACCION was founded in 1961 and issued the first microloan in 1973 in Brazil. ACCION International's partner microfinance institutions today are providing loans as low as $100 to poor women and men entrepreneurs in 22 countries in Latin America, the Caribbean, Asia and sub-Saharan Africa, and in the U.S. In the last decade alone, ACCION partners have disbursed more than 14 million loans totaling more than $9.4 billion; 97 percent of the loans have been repaid. Selected for the third consecutive year for its pioneering approaches to poverty alleviation, ACCION was among 25 organizations awarded the 2006 Social Capitalist Award by Fast Company magazine. For more information, visit www.accion.org.

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