FREE WRITING PROSPECTUS
 

Filed Pursuant to Rule 433
Registration No. 333-106040
December 15, 2006
AMERICAN INTERNATIONAL GROUP, INC.
FLOATING RATE LIBOR NOTES DUE DECEMBER 5, 2046
             
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
THE ISSUER HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS) WITH THE SEC FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND OTHER DOCUMENTS THE ISSUER HAS FILED WITH THE SEC FOR MORE COMPLETE INFORMATION ABOUT THE ISSUER AND THIS OFFERING. YOU MAY GET THESE DOCUMENTS FOR FREE BY VISITING EDGAR ON THE SEC WEB SITE AT WWW.SEC.GOV. ALTERNATIVELY, THE ISSUER, ANY UNDERWRITER OR ANY DEALER PARTICIPATING IN THE OFFERING WILL ARRANGE TO SEND YOU THE PROSPECTUS IF YOU REQUEST IT BY CALLING TOLL-FREE 1-888-722-9555, EXTENSION 1088.