AIG, PICC Group and PICC Life Propose Joint Venture in China

American International Group, Inc. (“AIG”)

, The People's Insurance Company (Group) of China Limited (“PICC Group”) and PICC Life Insurance Company Limited (“PICC Life”) entered into a non-binding term sheet with respect to the proposed establishment of a joint venture insurance agency company between AIG and PICC Life (the “Joint Venture”) that plans to distribute life insurance and other insurance products through a specialized agency force on a nationwide basis with a focus on major cities in China and to engage in reinsurance and other related business cooperation. In addition, AIG has agreed to subscribe for approximately US$500 million worth of H shares of PICC Group in its initial public offering in Hong Kong. AIG has