AIG Financial Products Corp.

50 Danbury Rd., Wilton, CT 06897-4444 (203) 222-4700 (800) 248-SWAP Fax: (203) 222-4780 Swift Code: AIGFUS33

July 15, 2011

Mr. Robert H. Benmosche President and Chief Executive Officer AIG American International Group, Inc. 180 Maiden Lane New York, NY 10038 Dear Bob, I am writing to inform you that the active unwind of AIG Financial Products has been completed. I will work over the next several weeks to finish the reporting of the second quarter of 2011 and the final transition of the management of the remaining portfolios. This will all be completed by the time of the earnings announcement on August 4th, and I will resign as Chief Operating Officer of AIG Financial Products effective the following day. The unwind of the Financial Products portfolio has been the most challenging and rewarding professional experience of my career, and I am delighted to report that it has come to a successful conclusion. Over the course of nearly three years, a very eventful three years, I have worked diligently with a group of dedicated and talented professionals to organize, analyze, reduce and de-risk the derivative positions at AIG Financial Products and I am proud of what we have achieved. We have reduced the number of trade positions from over 45,000 to under 2,200 at the end of the second quarter and have reduced risk metrics more than proportionally. We initially divided the business into 22 separate risk books and we have sold, de-risked or closed the vast majority of them, reducing and simplifying the remaining positions into just 4 books. We have reduced the total notional amount of derivatives outstanding by 90% from over $2 trillion to approximately $200 billion at the end of the second quarter and have reduced the notional amount of credit derivatives outstanding from over $300 billion to less than $30 billion at the end of the second quarter. The remaining credit derivatives have about $1 billion of additional upside and the majority of what remains is not subject to additional collateral calls. Despite this aggressive reduction and de-risking of the portfolio, we reported operating income in 2009, in 2010, and year to date in 2011 aggregating $1.0 billion. In addition, the cash asset positions managed by FP through the third quarter of 2010 contributed an additional $3.5 billion to operating income over that period. I could not have accomplished these results without the global group of hard working and diligent employees who worked in good faith to wind-down FP in a manner consistent with the objectives of reducing the risks to the overall AIG Group and paying back the taxpayer. As

they have done so, they have put themselves out of work. We have closed our offices in Hong Kong and Tokyo and we plan to close London this month. The headcount at FP will have declined from a high of over 420 employees when I arrived to about 50 by the time I leave. Virtually all of the remaining employees are in staff functions. The vast majority of the derivative positions that remain on the books of AIG FP are simple market derivatives entered into to manage market risks at AIG and its affiliates, or are hedges for those positions. The remainder of the positions offer either significant upside potential with little risk or were economically unfeasible to unwind. The management of all of these positions has been agreed to with existing areas within AIG where similar expertise already resides. Governance and risk controls that have been put into place ensure that these remaining positions will not prove to be a distraction to the primary business of AIG. From both a personal perspective and on behalf of my current and former FP colleagues, I would like to thank you for your unflagging support of our efforts. It has been a great pleasure working for you, and I admire your leadership and your service. I wish you and the very honorable employees of AIG well in the ongoing repositioning of the Company and I will make myself available to you, or to the Company, to the extent necessary after my departure. Finally, and most importantly, I wish you continued good health.

Warm regards,

Gerry Pasciucco Chief Operating Officer cc: Mr. Robert S. Miller, Jr. Mr. William N. Dooley

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