>> three key quotes from CEO Bob Benmosche . . .

No. 1: "Fix the foundation, and get the fundamentals right."
Since the financial crisis, AIG has been paring down its "non-core" operations and assets, focusing on strengthening its core operations in property and casualty insurance and life and retirement solutions. With the majority of its non-core operations out of the way, the first quarter of this year was a solid representation of how the fundamental operations for which AIG was known are strong and capable of growing. Benmosche's comment shows the true focus of the company is directed at getting back to basics and being the best. A great strategy that can help the company turn around its dulled image in the eyes of investors and Main Street.

No. 2: "Turnover is going to happen."
In the past week, there has been a lot of talk about the "exodus" of four top property and casualty executives to Berkshire Hathaway. . . . While the company's P&C operations are expansive and not entirely vulnerable to these departures, many analysts and investors questioned whether there would be more employees heading for the exits in the coming months.

According the Benmosche, every company is going to lose people to competitors from time to time, and AIG is not worried about the recent shuffle in management. In fact, he noted that the company has been able to retain 94% of its top 30% in producers, with 45% of those 

employees having a tenure of more than 10 years and 15% of 20 or more years. As competitors enter uncharted waters, Benmosche expects that companies with deep benches and experienced management will be likely to attract demand for their executives.

No. 3: "Slowly and cautiously."
. . . about the probability of a shareholder dividend or share buyback program. 

Investors, while perhaps getting a bit impatient, should be happy about the company's slow return to distributing capital. The cautious approach proves that management is not chasing a higher stock price for its own benefit but is instead trying to take the appropriate path to long-term success for the company and for investor well-being. <<