AIG board approves $2B common stock repurchase plan

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – American International Group Inc. announced Thursday that its board approved the plan to repurchase another $2bn of its common stock.

AIG Chairman Robert S. Miller said the company was able to authorize the share repurchase due to the completion of its sale of International Lease Finance Corporation and its strong capital position. The decision for the buyback enables AIG to return part of its sale proceeds directly to its shareholders, Mr. Miller added.

The financial services firm, whose core business includes U.S. retirement services and global property-casualty insurance, closed the $7.6bn sale of its aircraft-leasing ILFC unit to AerCap Holdings in May.

Since the end of the first quarter, the company has repurchased around $418mn of its common stock, according to AIG. The company’s market capitalization stands at $79.4bn, according to data from FactSet.

Last month, AIG reported a 27 percent decline in first-quarter profit due to rise in insurance claims and a drop in premiums at its property-casualty division.

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