In the following video, Max Macaluso talks to Fool financial analyst David Hanson about American International Group (AIG -0.45%). David explains that in the recent past, AIG was an undervalued turnaround story, in large part because of well-documented problems in the derivative market. Moving forward, he says, AIG has focused on its core insurance business and done well so far.

David points out three things to watch regarding AIG: core business focus, revenue challenges in the current low-interest environment, and executive leadership. He specifically touches on the critical issue of CEO succession as it relates to AIG's future prospects and investor confidence.