AIG 2012 Annual Report Download - page 6

When I said in my letter for AIG’s 2011 Annual Report that “time
will tell” if the people of AIG had executed the largest turnaround
in corporate history, it was with optimism that I believed it would
happen so quickly.
Beyond its impressive exit of government ownership, AIG contin-
ued to make sound business decisions in 2012, helping position
the company for a strong future by divesting non-core assets,
streamlining global operations under clear reporting lines, and
looking for smart opportunities to grow AIG’s business. Now the
true measure of success will be what we can do together as we
open a new chapter in 2013.
We believe the role of the Board of Directors is to fully under-
stand the business of AIG and, using that knowledge, to provide
true oversight and make informed decisions.
With this belief in mind, we have been an engaged Board, with
our sleeves rolled up, working independently and alongside
management to better guide AIG’s future. We will continue to do
whatever it takes, and we remain committed to implementing and
overseeing a set of guiding principles that act as AIG’s foundation.
For example, at every Board of Directors meeting, we get
updates from AIG’s Enterprise Risk Management (ERM) function
and review the results of stress tests that examine how AIG would
be affected by any number of scenarios. I firmly believe that the
work of the Board and the ERM team will help ensure that AIG
never again faces the kind of crisis we did in 2008.
Another example is Federal Reserve (Fed) oversight. In 2012,
when U.S. government ownership of AIG fell below 50 percent,
the Fed became AIG’s global regulator. AIG has welcomed the
Fed’s presence, as it has served to strengthen us by holding our
company to the highest standards. We feel strongly that it is im-
portant to maintain a transparent relationship and open dialogue
with the Fed – at the corporate level and at the Board level.
Besides me, several key Board committee chairs meet regularly
with representatives from the Fed to share perspectives. We will
continue to listen and respond to their questions, suggestions,
and guidance.
The Board also sees firsthand AIG’s operations in action, as we
schedule our meetings at various company locations around the
world. In the days after Storm Sandy, I, along with a group of
Board members, went to AIG’s Operations & Systems facility in
Kuala Lumpur, where we were surrounded by IT professionals, a
mobilized command center working seamlessly with its sister com-
mand center in Fort Worth, Texas, and a team of AIG colleagues
working tirelessly to support our business operations in New
Jersey and New York. While we need to continue to review and
strengthen our business continuity capabilities, AIG already has
proven its ability to deal with disruption. The global reach of this
company is impressive and invaluable in overcoming adversity
and seeking new opportunities.
And I see no more telling sign of AIG’s recovery than the decision
to retire the Chartis and SunAmerica Financial Group names,
again making AIG the go-to-market brand of our Property Casualty
business, and renaming the life and retirement business AIG Life
and Retirement. Coupled with a refreshed logo and brand promise
encouraging employees, clients, and partners to bring on the
challenges of tomorrow, we truly are looking to the future.
A good Board of Directors should empower people to stretch
and expand the limits of what is possible, and we will continue
to work hard to help AIG reach its full potential. We cannot wait
to begin the next chapter in the AIG story. We have a past, we
have a present, and – with thanks to AIG’s employees and Amer-
ica’s support – now we have a future. This is the time to make the
most of it.
DEAR AIG SHAREHOLDER,
ROBERT S. MILLER Non-Executive Chairman of the Board
We have a past,
we have a present,
and – with thanks
to AIG’s employees
and America’s
support – now we
have a future.
Robert S. Miller February 21, 2013
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