AIG Reduces United States Treasury Investment in AIG Subsidiary by Approximately $2B

American International Group, Inc.

today announced that it has reduced the remaining liquidation preference of preferred interests that the U.S. Department of the Treasury holds in AIA Aurora LLC to approximately $9.3 billion by applying the proceeds of approximately $2 billion from the sale of Nan Shan Life Insurance Company, Ltd.. AIG closed the sale of Nan Shan, its Taiwan-based life insurance company, to Ruen Chen Investment Holding Co., Ltd., a company owned 80 percent by the Ruentex Group and 20 percent by Pou Chen Corporation, for $2.16 billion in cash.