FREE WRITING PROSPECTUS
 

Filed Pursuant to Rule 433
Registration No. 333-106040
January 10, 2007
American International Group, Inc. (Issuer)
Medium-Term Notes, Series AIG-FP
US Dollar Zero Coupon Callable Notes due January 18, 2047
     
 
 
Trade Date:
   January 10, 2007
 
    
 
 
Settlement Date:
   January 18, 2007
 
    
 
 
Maturity Date:
   January 18, 2047
 
    
 
 
CUSIP:
   02687QBH0
 
    
 
 
Par Amount:
    $10,000,000
 
    
 
 
Purchase Price:
   100% of Par Amount
 
    
 
 
Underwriter:
   Merrill Lynch, Pierce, Fenner & Smith Incorporated
 
    
 
 
Redemption Dates:
   
 Callable in whole at the option of the Issuer at the Accreted Value starting January 18, 2012 and on each semi-annual payment date thereafter (each a “Redemption Date”), with 10 New York business days’ notice
 
    
 
 
Accreted Value:
   Accreted Value as shown on next page
 
    
 
 
Redemption Amount at Maturity:
    $135,329,000
 
    
 
 
Fixed Rate:
   
 0.00% coupon, 6.62% accretion yield, compounded semi-annually on a 30/360 day count basis, and paid at the earlier of the Redemption Date or Maturity on a Following New York Business Day Convention
 
    
 
 
Fixed Compounding Dates:
   
 January 18 and July 18
No adjustment for period end dates
 
    
 
 
Denominations:
   $1,000 with increments of $1,000
 
    
 
 
Form of Note:
   Book entry, DTC
 
    
 
 
Format:
   SEC Registered
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 the Merrill Lynch prospectus department toll free 866-500-5408

 

 

40 Year Non-Call 5 Year Accretion Schedule
                         
    Call Amount             Call Amount  
Call Date   (“Accreted Value”)     Call Date     (“Accreted Value”)  
n/a
     10,000,000                  
n/a
     10,331,001       7/18/2027       38,004,745  
n/a
     10,672,957       1/18/2028       39,262,704  
n/a
     11,026,233       7/18/2028       40,562,302  
n/a
     11,391,202       1/18/2029       41,904,917  
n/a
     11,768,251       7/18/2029       43,291,972  
n/a
     12,157,781       1/18/2030       44,724,938  
n/a
     12,560,204       7/18/2030       46,205,337  
n/a
     12,975,948       1/18/2031       47,734,736  
n/a
     13,405,452       7/18/2031       49,314,758  
1/18/2012
     13,849,174       1/18/2032       50,947,080  
7/18/2012
     14,307,582       7/18/2032       52,633,431  
1/18/2013
     14,781,164       1/18/2033       54,375,601  
7/18/2013
     15,270,421       7/18/2033       56,175,436  
1/18/2014
     15,775,873       1/18/2034       58,034,846  
7/18/2014
     16,298,055       7/18/2034       59,955,803  
1/18/2015
     16,837,522       1/18/2035       61,940,344  
7/18/2015
     17,394,845       7/18/2035       63,990,573  
1/18/2016
     17,970,615       1/18/2036       66,108,664  
7/18/2016
     18,565,444       7/18/2036       68,296,865  
1/18/2017
     19,179,961       1/18/2037       70,557,495  
7/18/2017
     19,814,819       7/18/2037       72,892,952  
1/18/2018
     20,470,690       1/18/2038       75,305,713  
7/18/2018
     21,148,271       7/18/2038       77,798,337  
1/18/2019
     21,848,280       1/18/2039       80,373,466  
7/18/2019
     22,571,460       7/18/2039       83,033,833  
1/18/2020
     23,318,576       1/18/2040       85,782,257  
7/18/2020
     24,090,423       7/18/2040       88,621,655  
1/18/2021
     24,887,817       1/18/2041       91,555,037  
7/18/2021
     25,711,605       7/18/2041       94,585,514  
1/18/2022
     26,562,661       1/18/2042       97,716,300  
7/18/2022
     27,441,886       7/18/2042       100,950,715  
1/18/2023
     28,350,214       1/18/2043       104,292,190  
7/18/2023
     29,288,608       7/18/2043       107,744,267  
1/18/2024
     30,258,063       1/18/2044       111,310,609  
7/18/2024
     31,259,607       7/18/2044       114,994,996  
1/18/2025
     32,294,301       1/18/2045       118,801,337  
7/18/2025
     33,363,245       7/18/2045       122,733,668  
1/18/2026
     34,467,570       1/18/2046       126,796,160  
7/18/2026
     35,608,448       7/18/2046       130,993,120  
1/18/2027
     36,787,090       1/18/2047       135,329,000