AIG 2013 Annual Report Download - page 6

2012 was the year we fully repaid America’s financial support of
AIG. 2013 was a year in which AIG demonstrated that it has a solid
foundation for sustainable profitability. Now, in 2014, it is time to
look forward to future opportunities.
We must be ready to capitalize on opportunity. The company is
working on better understanding and providing for customer needs,
and is working to intensify its customer focus and elevate innovation.
The Board will continue to consider the right opportunities to help
expand our global reach in all businesses, while at the same time
supporting the company’s initiative to become more scientific and
selective in the business it does.
While we have made remarkable progress over the last few years,
there is still work to be done. For example, the current stock price still
lags well behind book value. Consistent with the Board’s role of rep-
resenting the best interests of both the company and its shareholders,
one of our goals is to make AIG an investment worth keeping, and to
grow value for all of our stakeholders.
Another area of focus is the current and developing regulatory
structure, which is undergoing significant change. Under Dodd-Frank,
AIG was officially named a non-bank systemically important finan-
cial institution in 2013. We were also named a global systemically
important insurer by the Financial Stability Board in consultation with
the International Association of Insurance Supervisors.
As I have said many times, the Board welcomes regulation by the
Federal Reserve, and we are committed to working with them with
trust and transparency. They share our objective of making AIG a
better, stronger company, able to withstand whatever may happen in
the future.
There is a lot of work being done both in the U.S. and internationally
to build the appropriate regulatory structure for the insurance indus-
try, and the next few years are going to be crucial as regulations are
finalized. An important part of our work as a Board is to understand
and help shape this new regulatory environment. We have two main
objectives: ensuring global consistency of rules and requirements;
and creating a framework that is appropriate for the insurance indus-
try and that will help foster growth.
Cultivating great talent is one of the most important ways that AIG
distinguishes itself. We have put a lot of time and thought into making
sure the company has the right people in the right roles, and toward
developing a deep bench of incredibly capable leaders waiting
to step up to whatever challenge is given to them. For those who
were with AIG through the financial crisis, the company’s turnaround
further strengthened their leadership abilities, and our success is
attracting top talent to AIG. We are winners, and the best players
want to be on our team. The ability of the company to hire the best
people in the industry allows us to gain new ideas and perspectives
from their experience.
I and the other Directors have had the pleasure of observing
firsthand the people of AIG working together to bring the company
to this moment. We are moving in the right direction, with the right
priorities, the right perspectives, and, most importantly, the right
internal and external checks and balances. I look forward to where
we take AIG next.
Dear AIG Shareholder,
Robert S. Miller
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Robert S. Miller
Non-Executive Chairman of the Board