For the three months ended March 31, 2017, the net asset value per Common Share increased 6.95% while the investment return to our stockholders increased by 8.12%. By comparison, our benchmark, the Standard & Poor’s 500 Stock Index (including income), increased 6.07%. For the twelve months ended March 31, 2017, the return on the net asset value per Common Share increased by 16.99%, and the return to our stockholders increased by 18.55%; these compare with an increase of 17.20% for the S&P 500. During both periods, the discount at which our shares traded continued to fluctuate and on March 31, 2017, it was 16.1%.

As detailed in the accompanying financial statements (unaudited), as of March 31, 2017, the net assets applicable to the Company’s Common Stock were $1,079,723,852 equal to $39.93 per Common Share.

The increase in net assets resulting from operations for the three months ended March 31, 2017 was $68,570,633. During this period, the net realized gain on investments sold was $42,066,211 and the increase in net unrealized appreciation was $28,171,775. Net investment income for the three months was $1,160,640. Distributions to common shareholders totaled $5,423,646 and distributions to Preferred Stockholders amounted to $2,827,993. During the first quarter of 2017, The Company also repurchased 183,608 of its shares at a cost of $5,957,827, an average discount to net asset value of 16.7%. Strong relative performance contributed to our returns from the shares of companies in the materials, telecom and staples sectors while a lack of utilities and real estate were detractions from relative performance.

Strong first quarter U.S. equity market performance benefited from positive economic data, improving investor, consumer and business sentiment, and a perceived improvement in earnings visibility. Long term interest rates have remained relatively stable despite the Federal Reserve raising interest rates for the first time in a year with promises of more to come. Nevertheless, the U.S. Dollar has slowed its ascent in value against the currencies of its trading partners.

There appears to be a developing synchronized worldwide economic recovery. The Organisation for Economic Co-operation and Development’s (OECD) GDP, employment, final sales and purchasing manager survey data are all stronger. The implications of this improved economic activity are favorable for equity prices, though not without some caveats largely focused on political uncertainty, interest rates and domestic U.S. consumption.

Political uncertainty is reflective of the times in Europe, the Middle East, and the U.S. The U.S. elections may be over, but the split between the parties appears wider than ever. Europe appears similarly situated.

With the valuation of U.S. equities at the high end of historical norms, as evidenced by the price to sales ratio for the S&P 500 index around 2.07 times, price to adjusted earnings of 18.5 times and price to book of 2.93 times, interest rate changes play an increasingly signifi-cant role in determining the multiple one pays for cash earnings and growth, and thereby the aggregate level of the market. At this juncture in the expansion, markets appear comfortable with a gently rising rate environment reinforcing the view that growth of the economy is improving gradually.

Domestic U.S. consumption is becoming more diffi-cult to decipher as traditional retailers, auto and leisure spending habits diverge. Increasingly more expensive healthcare and higher deductibles for health plans appear to be taking their toll on consumption. U.S. auto sales have remained strong, but ancillary data seems to suggest that much of it is due to sub-prime loans. Recent used car sales data show weakness as lease returns depress prices. While it does not appear to be cycle threatening at this juncture, non-performing auto loans have been rising.

Despite these reservations, we remain sanguine on the long term performance of equities amid historic low interest rates, muted inflation, and improving economic trends worldwide. Given the continued high economic cost of rising interest rates in this still levered economy, the Fed may only jawbone rates and is unlikely to press hard on the rate accelerator without seeing real product price inflation. Ironically, the very ideological divide in the U.S. may be the warm porridge that Goldilocks enjoys as no significant policy shift can occur.

Information about the Company, including our investment objectives, operating policies and procedures, investment results, record of dividend and distribution payments, financial reports and press releases, is on our website and has been updated through March 31, 2017. It can be accessed on the internet at www.generalameri-caninvestors.com.

By Order of the Board of Directors,

GENERAL AMERICAN INVESTORS COMPANY, INC.

Jeffrey W. Priest

President and Chief Executive Officer

April 12, 2017

ADR - American Depository Receipt (a) Non-income producing security.

(b) Security is held as collateral for option written.

(c) Securities which have been held for less than one year, not previously disclosed, and not restricted.

(d) At March 31, 2017, the cost of investments for Federal income tax purposes was $733,111,817; aggregate gross unrealized appreciation was $557,081,030;
    aggregate gross unrealized depreciation was $15,193,938; and net unrealized appreciation was $541,887,092.

(see notes to unaudited financial statements)

The diversification of the Company’s net assets applicable to its Common Stock by industry group as of March 31,
2017 is shown in the table.

(see notes to unaudited financial statements)

(see notes to unaudited financial statements)

(see notes to unaudited financial statements)

The following table shows per share operating performance data, total investment return, ratios and supplemental data for the three months
ended March 31, 2017 and for each year in the five-year period ended December 31, 2016. This information has been derived from informa-
tion contained in the financial statements and market price data for the Company’s shares.

(see notes to unaudited financial statements)

1. SIGNIFICANT ACCOUNTING POLICIES - General American Investors Company, Inc. (the “Company”), established in 1927, is registered
under the Investment Company Act of 1940 as a closed-end, diversified management investment company. It is internally managed by
its officers under the direction of the Board of Directors.

The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles
(“U.S. GAAP”) pursuant to the requirements for reporting; Accounting Standards Codification 946, Financial Services - Investment
Companies (“ASC946”), and Regulation S-X.

The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income, expenses
and gains and losses during the reported period. Changes in the economic environment, financial markets, and any other parameters
used in determining these estimates could cause actual results to differ, and these differences could be material.

     a. SECURITY VALUATION Equity securities traded on a national securities exchange are valued at the last reported sales price on the
last business day of the period. Equity securities reported on the NASDAQ national market are valued at the official closing price on
that day. Listed and NASDAQ equity securities for which no sales are reported on that day and other securities traded in the over-
the-counter market are valued at the last bid price (asked price for options written) on the valuation date. Equity securities traded
primarily in foreign markets are valued at the closing price of such securities on their respective exchanges or markets. Corporate
debt securities, domestic and foreign, are generally traded in the over-the-counter market rather than on a securities exchange. The
Company utilizes the latest bid prices provided by independent dealers and information with respect to transactions in such securities
to determine current market value. If, after the close of foreign markets, conditions change significantly, the price of certain foreign
securities may be adjusted to reflect fair value as of the time of the valuation of the portfolio. Investments in money market funds
are valued at their net asset value. Special holdings (restricted securities) and other securities for which quotations are not readily
available are valued at fair value determined in good faith pursuant to specific procedures appropriate to each security as established
by and under the general supervision of the Board of Directors. The determination of fair value involves subjective judgments. As a
result, using fair value to price a security may result in a price materially different from the price used by other investors or the price
that may be realized upon the actual sale of the security.

     b. OPTIONS The Company may purchase and write (sell) put and call options. The Company purchases put options or writes call
options to hedge the value of portfolio investments while it purchases call options and writes put options to obtain equity market
exposure. The risk associated with purchasing an option is that the Company pays a premium whether or not the option is exercised.
Additionally, the Company bears the risk of loss of the premium and a change in market value should the counterparty not perform
under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. Premiums received
from writing options are reported as a liability on the Statement of Assets and Liabilities. Those that expire unexercised are treated
by the Company on the expiration date as realized gains on written option transactions in the Statement of Operations. The difference
between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions,
is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized
loss on written option transactions in the Statement of Operations. If a written call option is exercised, the premium is added to the
proceeds from the sale of the underlying security in determining whether the Company has realized a gain or loss on investments in
the Statement of Operations. If a written put option is exercised, the premium reduces the cost basis for the securities purchased by
the Company and is parenthetically disclosed under cost of investments on the Statement of Assets and Liabilities. The Company
as writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written option. See
Note 4 for option activity.

     c. SECURITY TRANSACTIONS AND INVESTMENT INCOME Security transactions are recorded as of the trade date. Dividend income and
distributions to stockholders are recorded as of the ex-dividend dates. Interest income, adjusted for amortization of discount and pre-
mium on investments, is earned from settlement date and is recognized on the accrual basis. Cost of short-term investments represent
amortized cost.

     d. FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS Portfolio securities and other assets and liabilities denominated in foreign
currencies are translated into U.S. dollars based on the exchange rate of such currencies versus U.S. dollars on the date of valuation.
Purchases and sales of securities, income and expense items denominated in foreign currencies are translated into U.S. dollars at
the exchange rate in effect on the transaction date. Events may impact the availability or reliability of foreign exchange rates used
to convert the U.S. dollar equivalent value. If such an event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Company’s Board of Directors. The Company does not separately report the effect of
changes in foreign exchange rates from changes in market prices on securities held. Such changes are included in net realized and
unrealized gain or loss on the Statement of Operations.

Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade
and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign
withholding taxes and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and
losses arise from changes in foreign exchange rates on foreign denominated assets and liabilities other than investments in securities
held at the end of the reporting period.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S.
companies as a result of, among other factors, the possibility of political or economic instability or the level of governmental supervi-
sion and regulation of foreign securities markets.

     e. DIVIDENDS AND DISTRIBUTIONS The Company expects to pay dividends of net investment income and distributions of net realized
capital and currency gains, if any, annually to common shareholders and quarterly to preferred shareholders. Dividends and distribu-
tions to common and preferred shareholders, which are determined in accordance with Federal income tax regulations are recorded
on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified to paid-in capital as they arise.

     f. FEDERAL INCOME TAXES The Company’s policy is to fulfill the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all taxable income to its stockholders. Accordingly, no provision for Federal
income taxes is required. In accordance with U.S. GAAP requirements regarding accounting for uncertainties in income taxes, man-
agement has analyzed the Company’s tax positions taken or expected to be taken on Federal and state income tax returns for all open
tax years (the current and the prior three tax years) and has concluded that no provision for income tax is required in the Company’s
financial statements.

     g. CONTINGENT LIABILITIES Amounts related to contingent liabilities are accrued if it is probable that a liability has been incurred
and an amount is reasonably estimable. Management evaluates whether there are incremental legal or other costs directly associated
with the ultimate resolution of a matter that are reasonably estimable and, if so, they are included in the accrual.

     h. INDEMNIFICATIONS In the ordinary course of business, the Company enters into contracts that contain a variety of indemnifications.
The Company’s maximum exposure under these arrangements is unknown. However, the Company has not had prior claims or losses
pursuant to these indemnification provisions and expects the risk of loss thereunder to be remote.

2. FAIR VALUE MEASUREMENTS - Various data inputs are used in determining the value of the Company’s investments. These inputs are
summarized in a hierarchy consisting of the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities (including money market funds which are valued using amortized cost
and which transact at net asset value, typically $1.00 per share),

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, etc.), and

Level 3 - significant unobservable inputs (including the Company’s own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those
securities. The following is a summary of the inputs used to value the Company’s net assets as of March 31, 2017:

Transfers of Level 3 securities, if any, are reported as of the actual date of reclassification. No such transfers occurred during the three
months ended March 31, 2017.

3. PURCHASES AND SALES OF SECURITIES - Purchases and sales of securities (other than short-term securities and options) for the three
months ended March 31, 2017 amounted to $38,552,896 and $85,181,437, on long transactions, respectively.

4. OPTIONS - The level of activity in purchased and written options varies from year to year based upon market conditions.
Transactions in purchased call and put options, as well as written call options and collateralized put options for the three months
ended March 31, 2017 were as follows:

5. CAPITAL STOCK AND DIVIDEND DISTRIBUTIONS - The authorized capital stock of the Company consists of 50,000,000 shares of
Common Stock, $1.00 par value, and 10,000,000 shares of Preferred Stock, $1.00 par value. With respect to the Common Stock,
27,037,507 shares were issued and outstanding; 8,000,000 Preferred Shares were originally issued and 7,604,687 were outstanding on
March 31, 2017.

On September 24, 2003, the Company issued and sold 8,000,000 shares of its 5.95% Cumulative Preferred Stock, Series B in an
underwritten offering. The Preferred Shares were noncallable for the 5 year period ended September 24, 2008 and have a liquidation
preference of $25.00 per share plus accumulated and unpaid dividends to the date of redemption. On December 10, 2008, the Board
of Directors authorized the repurchase of up to 1 million Preferred Shares in the open market at prices below $25.00 per share. This
authorization has been renewed annually thereafter. To date, 395,313 shares have been repurchased.

The Company allocates distributions from net capital gains and other types of income proportionately among holders of shares of
Common Stock and Preferred Stock. To the extent that dividends on the shares of Preferred Stock are not paid from net capital gains,
they will be paid from investment company taxable income or will represent a return of capital.

Under the Investment Company Act of 1940, the Company is required to maintain an asset coverage of at least 200% of the Preferred
Stock. In addition, pursuant to Moody’s Investor Service, Inc. Rating Agency Guidelines, the Company is required to maintain a
certain discounted asset coverage for its portfolio that equals or exceeds a Basic Maintenance Amount. If the Company fails to meet
these requirements in the future and does not cure such failure, the Company may be required to redeem, in whole or in part, shares
of Preferred Stock at a redemption price of $25.00 per share plus accumulated and unpaid dividends. In addition, failure to meet the
foregoing asset coverage requirements could restrict the Company’s ability to pay dividends on shares of Common Stock and could lead
to sales of portfolio securities at inopportune times.

The holders of Preferred Stock have voting rights equivalent to those of the holders of Common Stock (one vote per share) and, gener-
ally, vote together with the holders of Common Stock as a single class.

Holders of Preferred Stock will elect two members to the Company’s Board of Directors and the holders of Preferred and Common
Stock, voting as a single class, will elect the remaining directors. If the Company fails to pay dividends on the Preferred Stock in an
amount equal to two full years’ dividends, the holders of Preferred Stock will have the right to elect a majority of the directors. In
addition, the Investment Company Act of 1940 requires that approval of the holders of a majority of any outstanding Preferred Shares,
voting separately as a class, would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Stock
and (b) take any action requiring a vote of security holders, including, among other things, changes in the Company’s subclassification
as a closed-end investment company or changes in its fundamental investment policies.

5. CAPITAL STOCK AND DIVIDEND DISTRIBUTIONS - (Continued from bottom of previous page.)
The Company presents its Preferred Stock, for which its redemption is outside of the Company’s control, outside of the net assets
applicable to Common Stock in the Statement of Assets and Liabilities.
Transactions in Common Stock during the three months ended March 31, 2017 and the year ended December 31, 2016 were as follows:

At March 31, 2017, the Company held in its treasury 4,943,365 shares of Common Stock with an aggregate cost of $161,621,804.

The tax basis distributions during the year ended December 31, 2016 are as follows: ordinary distributions of $10,028,323 and net
capital gains distributions of $86,205,419. As of December 31, 2016, distributable earnings on a tax basis included $10,571,042
from undistributed net capital gains and $513,728,459 from net unrealized appreciation on investments if realized in future years.
Reclassifications arising from permanent “book/tax” difference reflect non-tax deductible expenses during the year ended December
31, 2016. As a result, additional paid-in capital was decreased by $1,741 and over-distributed net investment income was decreased by
$1,741. Net assets were not affected by this reclassification.

6. OFFICERS’ COMPENSATION - The aggregate compensation accrued and paid by the Company during the three months ended March 31,
2017 to its officers (identified on back cover) amounted to $1,596,000.

7. BENEFIT PLANS - The Company has funded (qualified) and unfunded (supplemental) noncontributory defined benefit pension plans
that are available to its employees. The pension plans provide defined benefits based on years of service and final average salary with
an offset for a portion of social security covered compensation. The components of the net periodic benefit cost (income) of the plans
for the three months ended March 31, 2017 were:

The Company recognizes the overfunded status of its defined benefit postretirement plan as an asset in the Statement of Assets and
Liabilities and recognizes changes in funded status in the year in which the changes occur through other comprehensive income.

The Company also has funded (qualified) and unfunded (supplemental) defined contribution thrift plans that are available to its employ-
ees. The aggregate cost of such plans for the three months ended March 31, 2017 was $357,372. The qualified thrift plan acquired 5,200
shares and distributed 31,908 shares of the Company’s Common Stock during the three months ended March 31, 2017 and held 591,197
shares of the Company’s Common Stock at March 31, 2017.

8. OPERATING LEASE COMMITMENT - In September 2007, the Company entered into an operating lease agreement for office space which
expires in February 2018 and provided for aggregate rental payments of approximately $10,755,000, net of construction credits. The
lease agreement contains clauses whereby the Company receives free rent for a specified number of months and credit towards con-
struction of office improvements, and incurs escalations annually relating to operating costs and real property taxes and to annual rent
charges beginning in February 2013. The Company has the option to renew the lease after February 2018 for five years at market rates.
Rental expense approximated $307,000 for the three months ended March 31, 2017. Minimum rental commitments under the operating
lease are approximately $1,183,000 in 2017, and $99,000 in 2018.

Previous purchases of the Company’s Common and Preferred Stock are set forth in Note 5 on pages 10 and 11. Prospective purchases of
Common and Preferred Stock may be made at such times, at such prices, in such amounts and in such manner as the Board of Directors
may deem advisable.

The policies and procedures used by the Company to determine how to vote proxies relating to portfolio securities and the Company’s
proxy voting record for the twelve-month period ended June 30, 2016 are available: (1) without charge, upon request, by calling us at
our toll-free telephone number (1-800-436-8401), (2) on the Company’s website at www.generalamericaninvestors.com and (3) on the
Securities and Exchange Commission’s website at www.sec.gov.

In addition to distributing financial statements as of the end of each quarter, General American Investors files a Quarterly Schedule
of Portfolio Holdings (Form N-Q) with the Securities and Exchange Commission (“SEC”) as of the end of the first and third calendar
quarters. The Company’s Forms N-Q are available at www.generalamericaninvestors.com and on the SEC’s website: www.sec.gov.
Copies of Forms N-Q may also be obtained and reviewed at the SEC’s Public Reference Room in Washington, DC or through the
Company by calling us at 1-800-436-8401. Information on the operation of the SEC’s Public Reference Room may be obtained by
calling 1-800-SEC-0330.

On April 13, 2017, the Company submitted a CEO annual certification to the New York Stock Exchange (“NYSE”) on which the
Company’s principal executive officer certified that he was not aware, as of that date, of any violation by the Company of the NYSE’s
Corporate Governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC
rules, the Company’s principal executive and principal financial officer made quarterly certifications, included in filings with the SEC
on Forms N-CSR and N-Q relating to, among other things, the Company’s disclosure controls and procedures and internal control over
financial reporting, as applicable.