Robert S. Miller Non-Executive  Chairman of the Board 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.  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. 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.  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.  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, 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.  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  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.  Robert S. Miller February 29, 2012