<ARTICLE> 7
<LEGEND>
                      AMERICAN INTERNATIONAL GROUP, INC.
                           Financial Data Schedule
                For the twelve months ended December 31, 1997
                   (in thousands, except per share amounts)
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<DEBT-HELD-FOR-SALE>                        38,077,792
<DEBT-CARRYING-VALUE>                       12,530,315
<DEBT-MARKET-VALUE>                         13,365,703
<EQUITIES>                                   5,348,019
<MORTGAGE>                                   3,012,811
<REAL-ESTATE>                                1,442,390
<TOTAL-INVEST>                             119,554,170
<CASH>                                          86,917
<RECOVER-REINSURE>                          16,110,521
<DEFERRED-ACQUISITION>                       6,592,506
<TOTAL-ASSETS>                             163,970,687
<POLICY-LOSSES>                             57,902,165
<UNEARNED-PREMIUMS>                          8,739,006
<POLICY-OTHER>                                       0
<POLICY-HOLDER-FUNDS>                       12,675,626
<NOTES-PAYABLE>                             17,260,319
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,897,804
<OTHER-SE>                                  22,103,323
<TOTAL-LIABILITY-AND-EQUITY>               163,970,687
<PREMIUMS>                                  22,346,679
<INVESTMENT-INCOME>                          4,749,992
<INVESTMENT-GAINS>                             118,515
<OTHER-INCOME>                                (96,652)
<BENEFITS>                                  18,167,417
<UNDERWRITING-AMORTIZATION>                  1,847,463
<UNDERWRITING-OTHER>                         3,187,803
<INCOME-PRETAX>                              4,698,898
<INCOME-TAX>                                 1,366,563
<INCOME-CONTINUING>                          3,332,335
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 3,332,335
<EPS-PRIMARY>                                     4.75
<EPS-DILUTED>                                     4.73
<RESERVE-OPEN>                              20,407,300
<PROVISION-CURRENT>                          9,732,600
<PROVISION-PRIOR>                            (376,400)
<PAYMENTS-CURRENT>                           2,976,300
<PAYMENTS-PRIOR>                             5,615,700
<RESERVE-CLOSE>                             21,171,500
<CUMULATIVE-DEFICIENCY>                        398,600