AMERICAN INTERNATIONAL GROUP, INC. (NYSE:AIG) Files An 8-K Entry into a Material Definitive Agreement

AMERICAN INTERNATIONAL GROUP, INC. (NYSE:AIG) Files An 8-K Entry into a Material Definitive Agreement

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Item1.01.Entry into a Material Definitive Agreement.

On January14, 2017, AIG Assurance Company, AIG Property Casualty
Company, AIG Specialty Insurance Company, AIU Insurance Company,
American Home Assurance Company, Commerce and Industry Insurance
Company, Granite State Insurance Company, Illinois National
Insurance Co., Lexington Insurance Company, National Union Fire
Insurance Company of Pittsburgh, Pa., New Hampshire Insurance
Company and The Insurance Company of the State of Pennsylvania
(collectively, the AIG Insurers), each an indirect subsidiary of
American International Group, Inc. (AIG), and National Indemnity
Company (NICO), a subsidiary of Berkshire Hathaway Inc.
(Berkshire), entered into a binding term sheet, to which the AIG
Insurers will enter into an Aggregate Excess of Loss Reinsurance
Agreement (the Reinsurance Agreement) to which the AIG Insurers
will reinsure 80 percent of the covered long-tail commercial
lines liabilities with NICO. The AIG Insurers will also enter
into certain other related agreements with NICO, including a
trust agreement and a Berkshire parent guarantee, at closing
(such agreements, including the Reinsurance Agreement, the
Agreements).

Under the Agreements: (i)in exchange for a payment of $9.8
billion plus interest at 4%per annum from January1, 2016 to the
date of payment, NICO will indemnify the AIG Insurers for 80% of
the net losses and net allocated loss adjustment expenses in
respect of covered long-tail commercial lines losses with dates
of loss prior to January1, 2016 and paid on or after that date
that exceed $25 billion; (ii)AIG will retain the risk of
collection on the AIG Insurers third-party reinsurance; (iii)AIG
will retain sole responsibility for claims handling and
adjudication, and NICO has various access, association and
consultation rights; (iv)in order to secure NICOs obligations to
the AIG Insurers, the aforementioned $9.8 billion payment plus
interest will be deposited into a collateral trust account; and
(v)Berkshire will provide a guarantee of NICOs payment and
collateral obligations to the AIG Insurers. NICOs overall limit
of liability under the Agreements is $20 billion.

The closing of the transaction contemplated by the Reinsurance
Agreement is subject to receipt of any required regulatory
approvals, execution of definitive transaction documentation and
satisfaction of other conditions.

Section2 Financial Information

Item2.02.Results of Operations and Financial
Condition.

On January20, 2017, AIG issued a press release relating to the
Agreements described above in Item1.01, as well as expected
material prior year adverse development. A copy of the press
release is attached as Exhibit 99.1 to this Current Report on
Form 8-K and is incorporated by reference herein.

The information in Item2.02 of this Current Report on Form 8-K,
including the exhibit hereto, shall not be deemed filed for the
purposes of Section18 of the Securities Exchange Act of 1934, as
amended, or otherwise subject to the liabilities of that section.
Furthermore, Item2.02 of this Current Report on Form 8-K,
including the exhibit hereto, shall not be deemed incorporated by
reference in any filing under the Securities Act of 1933, as
amended, or the Securities Exchange Act of 1934.

Section9 Financial Statements and Exhibits

Item9.01.Financial Statements and Exhibits.

(d) Exhibits.
99.1 Press release of American International Group, Inc. dated
January20, 2017.


About AMERICAN INTERNATIONAL GROUP, INC. (NYSE:AIG)

American International Group, Inc. (AIG) is an insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in over 100 countries and jurisdictions. The Company operates through two segments: Commercial Insurance and Consumer Insurance, as well as a Corporate and Other category. Commercial Insurance has three operating segments: Property Casualty, Mortgage Guaranty and Institutional Markets. Commercial Insurance segment is a provider of insurance products and services for commercial and institutional customers. Consumer Insurance also has three operating segments: Retirement, Life and Personal Insurance. Consumer Insurance is a franchise that offers a portfolio of retirement, life insurance and property casualty products through multiple distribution networks. Corporate and Other includes the Company, as well as certain legacy assets and run-off insurance businesses.

AMERICAN INTERNATIONAL GROUP, INC. (NYSE:AIG) Recent Trading Information

AMERICAN INTERNATIONAL GROUP, INC. (NYSE:AIG) closed its last trading session up +0.01 at 66.29 with 4,406,422 shares trading hands.

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