
                                                                Exhibit 99.1
Press Release



Contact:          Joe Norton (News Media)
                  212/770-3144

                  Charlene Hamrah (Investment Community)
                  212/770-7074

           AIG ANNOUNCES CLOSING OF AMERICAN GENERAL ACQUISITION

           NEW YORK, August 29, 2001 - American International Group, Inc.
(AIG) announced today the closing of its acquisition of American General
Corporation (American General).

           Based on today's closing date, American General shareholders
will receive 0.5790 of a share of AIG common stock in exchange for each
share of American General common stock.

           Commenting on the announcement, AIG Chairman M.R. Greenberg
said, "We are pleased to have American General as a member of the AIG
family. This acquisition represents an excellent strategic fit that creates
new opportunities for both organizations, benefiting our customers and
shareholders. American General joins the leading U.S.-based international
insurance and financial services organization, and the largest underwriter
of commercial insurance in the United States. AIG is also the leading
international life and general insurance organization, and the addition of
American General will significantly expand AIG's domestic life business.

           "In addition to its U.S. life insurance business, American
General brings a strong asset accumulation and retirement savings business
that complements our existing retirement savings business through
SunAmerica. AIG is now one of the largest retirement savings providers, and
we have an even stronger platform to capitalize on the significant growth
we see for this global business in the years ahead. Also, American
General's U.S. consumer lending business will add to the overall scope of
AIG's growing worldwide consumer finance business.

           "Over the past few months, AIG and American General have
initiated extensive studies to identify and plan for revenue enhancement
programs. We will begin immediately to implement these programs and are
enthusiastic about realizing the benefits of bringing American General into
the AIG family. We expect this acquisition to be accretive to AIG's earnings."

           The closing today is consistent with the prior disclosure by AIG
and American General of their intent to close the transaction as soon as
possible after the approval by American General shareholders and various
regulatory agencies. The final approval, from the Texas Department of
Insurance, was received yesterday, August 28.

           In addition, AIG announced that its Board of Directors has
revoked its previously existing authorization to purchase AIG common stock
in the open market.

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           AIG is the leading U.S.-based international insurance and
financial services organization and the largest underwriter of commercial
and industrial insurance in the United States. Its member companies write a
wide range of commercial, personal and life insurance products through a
variety of distribution channels in approximately 130 countries and
jurisdictions throughout the world. AIG's global businesses also include
financial services and asset management, including aircraft leasing,
financial products, trading and market making, consumer finance,
institutional, retail and direct investment fund asset management, real
estate investment management, and retirement savings products. American
International Group, Inc.'s common stock is listed on the New York Stock
Exchange, as well as the stock exchanges in London, Paris, Switzerland and
Tokyo.

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