United Bulgarian Bank AD and the "Ethniki" Hellenic General Insurance Company S.A. -both subsidiaries of National Bank of Greece (Ν.B.G.), the leading financial group in SE Europe- have decided to join forces with two subsidiaries of American International Group, Inc. (A.I.G.) by signing a joint venture agreement. According to this agreement, a life and a non-life insurance companies will be established, offering insurance services in the Bulgarian market, through the UBB's network. Ethniki Insurance and U.B.B. will each hold a 30% share of the companies' share capital. The remaining 40% as well as the management will be held by American Life Insurance Company (ALICO) and AIG Central Europe & CIS Insurance Holdings Corporation for the life and non-life insurance companies respectively. U.B.B. has a prominent position in the Bulgarian market, focusing on retail banking with 16% market share. As a part of NBG Group of Companies, UBB has achieved remarkable brand awareness and impressive penetration in the local market. Its extensive network of 130 branches is considered to be a valuable asset for the new companies, through which they intend to launch their bancassurance products. Since its foundation back in 1891, Ethniki Insurance has been the leader of the greek insurance market, with a market share of 15%, practicing all lines of insurance businesses. Emphasis has been given to the growth of bancassurance business through the network of NBG's branches. The company is also operating two subsidiaries in Cyprus, while in Romania, apart of its subsidiary Garanta, Ethniki has recently acquired Alpha Insurance Romania. American International Group is the world's leading organization in insurance and financial services, operating in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through a world-wide property-casualty and life insurance network, which is more extensive than that of any other company. In addition, AIG companies are leading providers of retirement products, financial services and asset management around the globe. AIG?s common stock is listed in the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo. AIG?s existing insurance companies in Bulgaria - AIG Life Bulgaria AD, and AIG Bulgaria Insurance and Reinsurance Company EAD - have long standing operations in the local market, and will continue to provide insurance products and services to existing and future customers. According to the estimations made by the Business Monitor International for 2004-2009, the growth rate of the Bulgarian insurance market will reach 15% for non-life and 27% for life insurance businesses, overcoming significantly the average rates in the European market. The two new-established companies are set to take advantage of this great business opportunity, by launching a wide variety of retail products, innovative services and integrated solutions. The successful and extensive business experience, the outstanding reputation of the shareholders and their in depth knowledge of the local market, matched with the growth prospects of Bulgaria, ensure the success of the joint venture.