AIG Announces Agreement With MetLife To Permit Sale Of MetLife Equity Securities Acquired By AIG In ALICO Sale

American International Group, Inc. (“AIG”) announced today that MetLife, Inc. (“MetLife”) has agreed to allow AIG to offer for sale the MetLife equity securities AIG received when it sold American Life Insurance Company (“ALICO”) to MetLife earlier than contemplated under the original terms of the sale.

This agreement will allow AIG, subject to market conditions, to sell the securities and use the proceeds to accelerate payments to the U.S. Department of the Treasury (“Treasury”) on Treasury’s preferred interest in the special purpose vehicle (“SPV”) through which AIG holds the MetLife securities. The expected proceeds also may allow AIG to reduce the balance due to the Treasury on its preferred interest in the SPV that holds AIG’s remaining interest in AIA Group Limited (“AIA”), depending on the value of the MetLife securities at the time of the sale.

“We appreciate MetLife’s agreement to permit the proposed sales,” said Robert S. Miller, AIG Chairman. “As a result, AIG expects to take another major step forward. Seven weeks ago, we repaid the Federal Reserve Bank of New York in full. These sales, if completed, would put the government closer to recouping its investment in AIG.”

AIG announced on March 8, 2010, that it had agreed to sell ALICO to MetLife for cash and MetLife equity securities. The sale closed on November 1, 2010, for total consideration of $16.2 billion (based on the closing price of MetLife common stock on October 29), comprising $7.2 billion in cash and the remainder in MetLife securities. The original terms of the sale required AIG to hold the securities for prescribed minimum holding periods of at least nine months from the date of closing.

AIG holds 78.2 million shares of MetLife common stock, MetLife preferred stock equivalent to 68.6 million shares of common stock, and MetLife equity units with a stated value of $3 billion that are ultimately convertible into at least 67.8 million shares of MetLife common stock.