American International Group, Inc.

2016 Annual Report

Letters to Shareholders

Douglas Steenland

Douglas M. Steenland

Non-Executive Chairman of the Board

Dear AIG Shareholder,

I would like to start my letter to you by thanking Peter Hancock for his service as President and Chief Executive Officer. During his tenure at AIG, Peter has tackled the company's most complex issues, including his role in the repayment of AIG's obligations to the U.S. Treasury in full and with a profit. He set the course for AIG to deliver higher quality, more sustainable earnings and dramatically reduced reserve risk. The Board of Directors and I are grateful for his leadership over the seven years he has been with the company.

Peter brought together a highly talented Executive Leadership Team. The Board has great confidence in this team to continue executing against the two-year Strategic Plan as announced in January 2016. We remain committed to our financial targets and objectives, including the return of capital to our shareholders and exceeding our expense reduction targets.

The Board and management team believe strongly that we are on the right strategic path. In fulfilling our fiduciary duties to you, the Board regularly examines strategic options. We previously rejected a potential split of the company between our Commercial and Consumer businesses as the analysis showed this to be value-destructive. This analysis still stands. Beyond the capital demands of such a scenario, we would also be sacrificing the value of AIG's global franchise. Across our Commercial and Consumer platforms, we see opportunities to serve our customers through our broad offering of product solutions. For example, we offer bespoke products that utilize the Commercial Multinational platform for individuals in the Private Client Group and Commercial/Consumer combined solutions for clients serving the shared economy.

Looking ahead, I have great confidence in the future of the company. Our balance sheet remains strong, and we expect to gain the benefit from actions taken in 2016, with a significantly improved risk profile and a more efficient cost base. Within the businesses, we expect our Consumer business to continue to perform well, and for the operating improvements in Commercial to positively impact financial performance.

The Board is actively engaged in the process of identifying the right individual to serve as CEO and lead the company at this important time. AIG is a world-class insurance company with its best years ahead of it.

The Board and I would like to thank our diligent and hard-working employees around the world for continuing to provide the highest levels of service to our clients. To AIG customers, thank you for choosing AIG as your partner to navigate an ever-changing and challenging world. Everyone at AIG is committed to continually improving our service and products to be our clients' most valued insurer.

Finally, to our shareholders, thank you for your support. We are committed to delivering value to you, both today and long into the future.

Sincerely,

Douglas Steenland

Douglas M. Steenland

Non-Executive Chairman of the Board