PRICING SUPPLEMENT
 

PRICING SUPPLEMENT NO. AIG-FP-4   FILED PURSUANT TO RULE 424(b)(2)
DATED JANUARY 12, 2007   REGISTRATION NO. 333-106040
TO PROSPECTUS DATED JULY 24, 2006    
AND PROSPECTUS SUPPLEMENT DATED OCTOBER 12, 2006    
AMERICAN INTERNATIONAL GROUP, INC.
MEDIUM-TERM NOTES, SERIES AIG-FP,
US DOLLAR ZERO COUPON CALLABLE NOTES DUE JANUARY 18, 2047
     
Principal Amount: U.S.$10,000,000
  Issue Date: January 18, 2007
 
    
Agents’ Discount or Commission: U.S.$55,000
  Stated Maturity: January 18, 2047
 
    
Net Proceeds to Issuer: U.S.$9,945,000
  Interest Rate: 0.00%
 
    
Form: þ Book Entry o Certificated
  CUSIP No.: 02687QBH0
 
    
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): N/A
The notes are being placed through or purchased by the Agents listed below:
                                 
Agent   Principal Amount                          
Merrill Lynch, Pierce, Fenner & Smith Incorporated
     U.S.$10,000,000     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 100% of principal amount.
Payment at Maturity:
At stated maturity, subject to a prior redemption, the Issuer will pay to the Holder $135,329,000. If the stated maturity date is not a New York business day, such sum will be payable on the following New York business day (without any interest or other payment in respect of such delay).
Redemption at Option of Issuer:
The notes will be redeemable, in whole only, at the option of the Issuer, upon written notice of a minimum of 10 New York business days and a maximum of 60 days, on each of the redemption dates and at the corresponding redemption prices set forth in the following table:
         
Redemption Date   Redemption Price  
January 18, 2012
   $ 13,849,174  
July 18, 2012
     14,307,582  
January 18, 2013
     14,781,164  
July 18, 2013
     15,270,421  
January 18, 2014
     15,775,873  
July 18, 2014
     16,298,055  
January 18, 2015
     16,837,522  
July 18, 2015
     17,394,845  
January 18, 2016
     17,970,615  
July 18, 2016
     18,565,444  
January 18, 2017
     19,179,961  
July 18, 2017
     19,814,819  
January 18, 2018
     20,470,690  
July 18, 2018
     21,148,271  
January 18, 2019
     21,848,280  
July 18, 2019
     22,571,460  
January 18, 2020
     23,318,576  
July 18, 2020
     24,090,423  
January 18, 2021
     24,887,817  

 

 

         
Redemption Date   Redemption Price  
July 18, 2021
     25,711,605  
January 18, 2022
     26,562,661  
July 18, 2022
     27,441,886  
January 18, 2023
     28,350,214  
July 18, 2023
     29,288,608  
January 18, 2024
     30,258,063  
July 18, 2024
     31,259,607  
January 18, 2025
     32,294,301  
July 18, 2025
     33,363,245  
January 18, 2026
     34,467,570  
July 18, 2026
     35,608,448  
January 18, 2027
     36,787,090  
July 18, 2027
     38,004,745  
January 18, 2028
     39,262,704  
July 18, 2028
     40,562,302  
January 18, 2029
     41,904,917  
July 18, 2029
     43,291,972  
January 18, 2030
     44,724,938  
July 18, 2030
     46,205,337  
January 18, 2031
     47,734,736  
July 18, 2031
     49,314,758  
January 18, 2032
     50,947,080  
July 18, 2032
     52,633,431  
January 18, 2033
     54,375,601  
July 18, 2033
     56,175,436  
January 18, 2034
     58,034,846  
July 18, 2034
     59,955,803  
January 18, 2035
     61,940,344  
July 18, 2035
     63,990,573  
January 18, 2036
     66,108,664  
July 18, 2036
     68,296,865  
January 18, 2037
     70,557,495  
July 18, 2037
     72,892,952  
January 18, 2038
     75,305,713  
July 18, 2038
     77,798,337  
January 18, 2039
     80,373,466  
July 18, 2039
     83,033,833  
January 18, 2040
     85,782,257  
July 18, 2040
     88,621,655  
January 18, 2041
     91,555,037  
July 18, 2041
     94,585,514  
January 18, 2042
     97,716,300  
July 18, 2042
     100,950,715  
January 18, 2043
     104,292,190  
July 18, 2043
     107,744,267  
January 18, 2044
     111,310,609  
July 18, 2044
     114,994,996  
January 18, 2045
     118,801,337  
July 18, 2045
     122,733,668  
January 18, 2046
     126,796,160  
July 18, 2046
     130,993,120  
In the event that a date in the tables above is not a New York business day, the redemption price will be payable on the next succeeding New York business day (without any interest or other payment in respect of such delay).
     
Other Provisions:
  The amount payable upon an acceleration of maturity pursuant to Section 502 of the Indenture as of any date will be the Redemption Price as of the most recent Redemption Date (or the Principal Amount for any date before January 18, 2012), plus an amount equal to interest on such amount calculated at an annual rate of 6.62% for the period from such most recent redemption date (or, in case of a date before January 18, 2012, from the Issue Date, compounded semi-annually), calculated on the basis of a 360 day year comprising 12 30-day months.

 

 

     
 
  These notes have been issued with Original Issue Discount (“OID”), as defined by Section 1273 of the Internal Revenue Code of 1986, as amended. The amount of OID on each note is $12,523.90. The issue date of this note is January 18, 2007. The yield to maturity on the note is 6.62%.
 
    
Use of Proceeds:
  We intend to lend the net proceeds from the sale of the notes to our subsidiary AIG Financial Products Corp. or certain of its subsidiaries for use for general corporate purposes.
 
    
Certain U.S. Federal Income Tax Consequences:
  Notwithstanding that the final maturity of the notes is more than 30 years after the original issue date, prospective investors should refer to the discussion under “United States Taxation” in the accompanying prospectus supplement for more information on OID and a discussion of the other material consequences of owning the notes.
The information in this Pricing Supplement, other than the information regarding the initial public offering price, the net proceeds to the issuer, the identities of the initial purchasers or agents, the information under “Certain U.S. Federal Income Tax Consequences” above, and the following two paragraphs, will be incorporated by reference into the Global Security representing all the Medium-Term Notes, Series AIG-FP.
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., McDonald Investments 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. To date, including the notes described by this pricing supplement, we have accepted offers to purchase approximately $1.8 billion aggregate principal amount (or its equivalent in one or more foreign currencies) of notes described in the accompanying prospectus supplement, including $81,551,000 aggregate principal amount (or its equivalent in one or more foreign currencies) of Series AIG-FP notes.
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.