Amendment to Unconditional Capital Maintenance Agreement between American International Group, Inc. and The United States Life Insurance Company in the City of New York (March 30, 2012)
American International Group, Inc. (AIG) and The United States Life Insurance Company in the City of New York have agreed to amend their existing Capital Maintenance Agreement. Effective March 30, 2012, the required minimum capital level for the insurance company is set at 435% of its Company Action Level Risk-Based Capital (RBC). This amendment ensures the insurance company maintains a higher capital threshold as agreed by both parties.
Exhibit 10.7
March 30, 2012
The United States Life Insurance Company in the City of New York
c/o SunAmerica Financial Group, Inc.
2727-A Allen Parkway
Houston, Texas 77019
Attention: Chief Financial Officer
The United States Life Insurance Company in the City of New York
c/o SunAmerica Financial Group, Inc.
1999 Avenue of the Stars
Los Angeles, CA 90067
Attention: General Counsel
Ladies and Gentlemen:
Reference is made to that certain Unconditional Capital Maintenance Agreement dated as of March 30, 2011 (the “Capital Maintenance Agreement”) by and between American International Group, Inc. and The United States Life Insurance Company in the City of New York (the “Company”). Capitalized terms, unless otherwise defined herein, shall have the meanings set forth in the Capital Maintenance Agreement.
Pursuant to paragraph 3 of the Capital Maintenance Agreement, the undersigned parties hereby agree that effective as of March 30, 2012, the Specified Minimum Percentage shall equal 435%. Accordingly, Schedule 1 to the Capital Maintenance Agreement shall be restated as follows:
“The Specified Minimum Percentage shall equal 435% of the Company’s Company Action Level RBC.”
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| Yours sincerely, | |
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| AMERICAN INTERNATIONAL GROUP, INC. | |
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| By: | /s/ David L. Herzog |
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| Name: David L. Herzog |
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| Title: Executive Vice President and |
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| Chief Financial Officer |
Acknowledged and agreed:
THE UNITED STATES LIFE INSURANCE COMPANY
IN THE CITY OF NEW YORK
| By: | /s/ Michael J. Akers |
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| Name: Michael J. Akers |
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| Title: Executive Vice President |
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