| ISSUER: | American International Group, Inc. | |||||
| SECURITY: | Floating Rate Notes due December 5, 2046 (series AIG-FP) | |||||
| CUSIP: | 02687QBG2 | |||||
| RATINGS: | Aa2/AA/AA (Stable/Stable/Stable) | |||||
| NOTE TYPE: | Senior unsecured, SEC registered | |||||
| TRADE DATE: | December 15, 2006 | |||||
| SETTLEMENT DATE (T+4): | December 21, 2006 | |||||
| MATURITY DATE: | December 5, 2046 | |||||
| AGGREGATE PRINCIPAL AMOUNT OFFERED: |
$23,501,000 |
|||||
| PRICE TO PUBLIC (ISSUE PRICE): | 100%, plus interest accrued from December 5, 2006 to, but not including, December 21, 2006 | |||||
| UNDERWRITING DISCOUNT (GROSS SPREAD): |
1.00% |
|||||
| ALL-IN PRICE (NET OF UNDERWRITING DISCOUNT): |
99.00% |
|||||
| NET PROCEEDS: | $23,319,422.11 (includes accrued of $53,432.11) | |||||
| BENCHMARK: | Three-month LIBOR | |||||
| SPREAD TO BENCHMARK: | minus 25 basis points | |||||
| INTEREST RATE: | LIBOR - 0.25% | |||||
| INDEX MATURITY: | Three months | |||||
| INTEREST RESET PERIOD: | Quarterly | |||||
| INTEREST RESET DATES: | 2 London business days preceding each applicable Interest Reset Date | |||||
| INTEREST PAYMENT DATES: | March 5, June 5, September 5 and December 5, Commencing on March 5, 2007 | |||||
| DAY COUNT: | Actual/360 | |||||
| FORM: | DTC, Book-entry | |||||
| INITIAL INTEREST RATE: | LIBOR Telerate - 0.25%, LIBOR was determined as of 11:00am on December 1, 2006 | |||||
| DENOMINATIONS: | Minimum of $1,000 with increments of $1,000 thereafter; each owner of a beneficial interest in a Note will be required to hold such beneficial interest in a minimum principal amount of $1,000 | |||||
| REDEMPTION: | The notes will be redeemable, in whole or in part, at the option of the Issuer, upon written notice of a minimum of 30 and a maximum of 60 calendar days, on each of the redemption dates and at the corresponding redemption prices (in each case expressed as a percentage of the principal amount) set forth in the following table, together with any accrued interest to the redemption date: | |||||
| Redemption Date | Redemption Price | |||||
| December 5, 2036 | 105.00 | % | ||||
| December 5, 2037 | 104.50 | % | ||||
| December 5, 2038 | 104.00 | % | ||||
| December 5, 2039 | 103.50 | % | ||||
| December 5, 2040 | 103.00 | % | ||||
| December 5, 2041 | 102.50 | % | ||||
| December 5, 2042 | 102.00 | % | ||||
| December 5, 2043 | 101.50 | % | ||||
| December 5, 2044 | 101.00 | % | ||||
| December 5, 2045 | 100.50 | % | ||||
| REPAYMENT: | The notes will be repayable, in whole or in part, at the option of the holder, upon written notice of a minimum of 30 and a maximum of 60 calendar days, on each of the repayment dates and at the corresponding repayment prices (in each case expressed as a percentage of the principal amount) set forth in the following table, together with any accrued interest to the repayment date: | |||||
| Repayment Date | Repayment Price | |||||
| December 5, 2009 | 97.500 | % | ||||
| December 5, 2010 | 97.625 | % | ||||
| December 5, 2011 | 97.750 | % | ||||
| December 5, 2012 | 97.875 | % | ||||
| December 5, 2013 | 98.000 | % | ||||
| December 5, 2014 | 98.125 | % | ||||
| December 5, 2015 | 98.250 | % | ||||
| December 5, 2016 | 98.375 | % | ||||
| December 5, 2017 | 98.500 | % | ||||
| December 5, 2018 | 98.625 | % | ||||
| December 5, 2019 | 98.750 | % | ||||
| December 5, 2020 | 98.875 | % | ||||
| December 5, 2021 | 99.000 | % | ||||
| December 5, 2022 | 99.125 | % | ||||
| December 5, 2023 | 99.250 | % | ||||
| December 5, 2024 | 99.375 | % | ||||
| December 5, 2025 | 99.500 | % | ||||
| December 5, 2026 | 99.625 | % | ||||
| December 5, 2027 | 99.750 | % | ||||
| December 5, 2028 | 99.875 | % | ||||
| December 5, 2029 | 100.00 | % | ||||
| And each December 5th thereafter to, and including maturity | 100.00 | % | ||||
| In the event that a date in the table above is not a business day, the repayment date will be the next succeeding business day. | ||||||
| UNDERWRITER: | UBS Securities LLC | |||||