AIG 2012 Annual Report Download - page 4

Over the past several years, the people of AIG have demon-
strated that we keep our promises – to our customers around
the world, to the communities where we work and live, and to
America.
When I joined AIG in August 2009, we were selling off valuable
assets for far less than their true value. Everywhere I turned, I
found great people who were committed to serving their clients
and to doing the right thing – but who were becoming increas-
ingly demoralized as they witnessed their company being rapidly
dismantled amid unprecedented public criticism levied at the
expense of their commitment to make things right.
It was clear that AIG was too big, too diverse, and not transpar-
ent enough. As we identified the insurance businesses that formed
the core of the company, and those that ultimately would need
to be sold to help repay America, we realized we needed to
change in many ways to meet and exceed the expectations of
our customers, our regulators, our investors, and each other.
Only by reenergizing and empowering the people of AIG were
we able to envision a future worth working toward.
Fast-forward to the end of 2012 – a year that I know will go
down in AIG history as a pivotal year. We are deeply proud of
the progress we’ve made and the promises we’ve kept:
■ We said we would fully repay the $182.3 billion in financial
support that America extended to us – plus a profit. By
December 2012, the people of AIG had made good on
that promise, returning more than $205 billion to America.
That’s every penny, plus a profit of more than $22 billion.
■ We said we would become a smaller, more focused
company. Today, I am very proud that the insurance
businesses that we identified in 2009 as core to the new
AIG – property casualty, life and retirement, and
mortgage guaranty – continue to thrive as we have sold
off other businesses, and streamlined our operations and
support functions. We have become, truly, one AIG – and
rebranded our core insurance operations under the AIG
name with a new, reinvigorated AIG logo.
■ We said we would pay for performance. 2012 marks
three years that we have adhered to comprehensive pay-
for-performance processes and standards – ensuring that our
people are properly motivated and appropriately rewarded
for their efforts to balance profit, growth, and risk.
■ We said we would focus on the right growth opportunities.
We’ve forged a number of strategic partnerships, including
our investment in People's Insurance Company (Group) of
China Limited, and our acquisitions of Woodbury Financial
Services, Inc. and Fuji Fire and Marine Insurance Co., Ltd.
■ We said we would manage risk better. Now risk
management is integrated across all of AIG and is a key
element of how we make decisions and manage our
businesses. We also routinely conduct enterprise-wide stress
tests under a range of worst-case scenarios to better manage
our financial resources in order to maintain our financial
strength. This risk management framework provides AIG
management and our Board of Directors with insight and an
understanding of the major risk positions across AIG.
TO OUR SHAREHOLDERS,
ROBERT H. BENMOSCHE President and Chief Executive Officer
We are committed
to building on our
successes and
demonstrating what
the new AIG can do.
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