PRICING SUPPLEMENT NO. MP-7
 

     
PRICING SUPPLEMENT NO. MP-7
  FILED PURSUANT TO RULE 424(b)(2)
DATED OCTOBER 4, 2007
  REGISTRATION NOS. 333-106040; 333-143992
TO PROSPECTUS DATED JULY 13, 2007
   
AND PROSPECTUS SUPPLEMENT DATED JULY 13, 2007
   
AMERICAN INTERNATIONAL GROUP, INC.
5.450% MEDIUM-TERM NOTES, SERIES MP, MATCHED INVESTMENT PROGRAM, DUE MAY 18, 2017
     
Principal Amount: U.S.$200,000,000
  Original Issue Date: October 10, 2007
 
   
Agent’s Discount or Commission: U.S.$218,000
  Stated Maturity: May 18, 2017
 
   
Net Proceeds to Issuer: U.S.$200,801,444.44 (including accrued interest of $4,299,444.44)
  Interest Rate: 5.450%
 
   
Form: þ Book Entry o Certificated
  CUSIP No.: 02687QBW7
 
   
Specified Currency (If other than U.S. dollars): N/A
  Authorized Denominations (If other than U.S.$1,000 and integral multiples of U.S.$1,000 in excess thereof): U.S.$2,000 and integral multiples of U.S.$1,000 in excess thereof.
The notes are being placed through or purchased by the Agent listed below:
                 
Wachovia Capital Markets, LLC
  U.S.$200,000,000   Capacity:   o Agent   þ Principal
If as Agent:   The notes are being offered at a fixed initial public offering price of ____% of principal amount.
If as Principal:
  o   The notes are being offered at varying prices related to prevailing market prices at the time of resale.
 
  þ   The notes are being offered at a fixed initial public offering price of 98.360% of principal amount plus accrued interest of $4,299,444.44 from May 18, 2007.
Interest Payment Dates: Semi-annually on every May 18 and November 18, commencing November 18, 2007
Redemption Provisions:
  þ   The notes cannot be redeemed prior to the Stated Maturity.
 
  o   The notes may be redeemed prior to the Stated Maturity.
Initial Redemption Date:
Initial Redemption Percentage: ___%
Annual Redemption Percentage Reduction: ___%
Optional Repayment Provisions:
  þ   The notes cannot be repaid prior to the Stated Maturity.
 
  o   The notes can be repaid prior to the Stated Maturity at the option of the holder of the notes. Optional Repayment Date(s):
Use of Proceeds:   We intend to use the net proceeds from the sale of the notes to fund the AIG Matched Investment Program, American International Group, Inc.’s principal spread-based investment activity.
Other Provisions: None
The notes offered hereby constitute a further issuance of, and will be consolidated with, the $850,000,000 aggregate principal amount of 5.450% Medium-Term Notes, Series MP, Matched Investment Program, Due May 18, 2017, issued by us on May 18, 2007 and the $200,000,000 aggregate principal amount of 5.450% Medium-Term Notes, Series MP, Matched Investment Program, Due May 18, 2017, issued by us on May 31, 2007. The notes offered hereby will have the same CUSIP number as the previously issued notes. Upon completion of this offering, the aggregate principal amount outstanding of such notes will be $1,250,000,000.
We are offering notes on a continuing basis through AIG Financial Securities Corp., ABN AMRO Incorporated, Banca IMI S.p.A., Banc of America Securities LLC, Barclays Capital Inc., Bear, Stearns & Co. Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Capital Markets, Inc., Calyon Securities (USA) Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Daiwa Securities America Inc., Daiwa Securities SMBC Europe Limited, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Greenwich Capital Markets, Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc., KeyBanc Capital Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Mitsubishi UFJ Securities International plc, Morgan Stanley & Co. Incorporated, RBC Capital Markets Corporation, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, TD Securities (USA) LLC, UBS Securities LLC, and Wachovia Capital Markets, LLC, as agents, each of which has agreed to use its best efforts to solicit offers to purchase notes. We may also accept offers to purchase notes through other agents. See “Plan of Distribution” in the accompanying prospectus supplement.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the notes or determined if the prospectus, the prospectus supplement or this pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.