content_image/276192.jpg content_image/276210.jpg
## Chairman’s Message 

## Dear AIG Shareholder, 

I have said it many times over the past year, and, as Chairman of AIG, I believe it is worth repeating: Thank you. 

T h a n k  y o u  t h e  A m e r i c a n  t x - payers for giving the people of AIG a chance to prove what they are worth. Thank you to the people of AIG for realizing we were given a second chance and for quietly, without pausing, look- ing forward and working every day with conviction. Thank you to Bob Benmosche, AIG’s President and Chief Executive, for persevering against all odds imagined and unimagined, and never wavering from what he believes. 

In my career, I have been honored to be part of and witness dramatic turn- arounds. The story of AIG’s transfor- mation and the progress this company has made, from my vantage point, are remarkable. Bob deserves tremendous praise and respect for everything accomplished at AIG since he joined in August 2009. To quote the old idiom, “Time will tell,” but I predict that Bob and the people of AIG may have orchestrated the largest turnaround in corporate history. 

Less than three short years ago, AIG leadership was steering this great company to its breakup. Under the theory that selling off the company’s assets was the best way to generate the funds to repay American taxpayers, legal mechanisms were put in place, businesses were rebranded, and assets were being sold. Unfortunately, these efforts would have fallen far short of repaying our obligations to the taxpayers. 

Then Bob came along with an outsider’s fresh perspective of what it meant to compete against AIG. As former Chief Executive of another large 

insurance company, Bob recognized that AIG was made up of proud profes- sionals who were the best, the most innovative, and consistently the fiercest competitors in nearly every core busi- ness in which AIG operated. 

Bob asked the Board, “Isn’t AIG worth more together than the sum of its parts?” “Aren’t AIG’s people worth more?” These questions begged a change in course — and made us recon- sider our plans. Bob knew the answers and set about planning and executing what ultimately raised nearly $45 bil- lion, nearly every cent directly payable to the U.S. government. Eventually, with the U.S. Department of the Trea- sury and the Federal Reserve convinced that the breakup of AIG wasn’t neces- sary, the complete recapitalization of the U.S. government investment was put in motion. 

T h e  u n p r e c d n t e d  a c o m p l i s h - ments, persistence, and commitment of Bob and the people of AIG raise the bar  on what we as Board members think is expected of us. As a Board, we feel the need to do our part to ensure that these accomplishments are not wasted. We certainly have fiduciary and governance responsibilities mandated by corporate charter and regulators, but this Board feels a greater sense of purpose and responsibility. 

We are continually planning for the future and actively engaged in provid- ing this unbeatable AIG team with the tools and the leadership to continue to be in the best position to compete. A top priority is ensuring that AIG has the appropriate controls over risk. Much of this work on risk helps us be prepared for additional regulatory supervision. 

<img src='content_image/276192.jpg'>

And we have a particularly keen sense of how AIG needs to be a responsible corporate citizen in this new era. 

We are also actively working with AIG management on certain key proj- ects. For example, the Board formed the Special Technology Committee to over- see AIG management’s work to enable the people of AIG to manage risk and business processes in a very complex environment. 

Another priority is succession planning. Like me, Bob joined AIG out of retirement, and while he has made commitments to stay for longer than we anticipated, we are planning for his eventual retirement. The AIG Board of Directors has devoted much to being prepared for the future, and we have a strong governance structure in place. 

AIG made tremendous progress during 2011. This was the year that galvanized the people of AIG to put the crisis behind them and refocus on business fundamentals. On behalf of the AIG Board of Directors and everyone at AIG, thank you for your continued support and for allowing us to really prove what AIG is worth. 

Sincerely, 

<img src='content_image/276210.jpg'>

