American International Group, Inc.

2017 Annual Report

Letters to Shareholders

AIG Chairman Douglas Steenland

Douglas M. Steenland

Independent Chairman of the Board

Dear AIG Shareholder,

In 2017, the Board’s most significant achievement was the May appointment of Brian Duperreault as President and CEO of AIG.

With Brian’s appointment, AIG gained a CEO with extensive insurance industry experience, a proven track record of delivering strong financial performance and growth and a roadmap to improving AIG’s performance and restoring it to industry leadership.

Since his arrival, Brian has outlined a clear strategy for the company focused on pursuing long-term profitable growth, attracting new leaders to complement and strengthen AIG’s executive team and improving core insurance operations. Several of the management team’s recent accomplishments include:

  • Instilling a renewed focus on underwriting and on the performance of AIG’s core businesses;
  • Realigning AIG’s organizational structure to increase accountability and better support profitable growth;
  • Commencing work on a platform to transform commercial insurance through digital technology, data analytics and automation; and
  • Growing the business by agreeing to acquire Validus Holdings, Ltd.

Another notable development was the Financial Stability Oversight Council’s rescission of AIG’s designation as a nonbank systemically important financial institution. This decision acknowledges AIG as the company it is today following substantial and successful de-risking over the past several years.

The Board recognizes these changes also came about through the hard work and dedication of AIG’s nearly 50,000 employees around the world. We are continually grateful for all that they do each and every day to help AIG realize profitable growth while keeping its promises to those AIG insures. We want to also thank clients for trusting AIG to manage their most important risks in a world filled with increasing uncertainty.

In 2017, Board members Steve Miller, George Miles and John Paulson concluded their tenures. Peter Fisher and Samuel Merksamer have also decided not to stand for re-election this year. On behalf of all AIG Directors, I would like to thank each of them for their service and their valuable contributions.

Looking ahead, the Board continues to work to earn and retain the trust and confidence of you, our shareholders. I speak for all of our Board members when I say that delivering long-term value to you remains our top priority.

Sincerely,

Douglas Steenland signature

Douglas M. Steenland

Independent Chairman of the Board