Upon the closing of the most recent transaction, expected Friday, the U.S. Department of the Treasury will have sold the last of its remaining shares of American International Group Inc. (AIG) common stock.
The Treasury has priced an offering of approximately 234.2 million shares of AIG common stock at a price to market of $32.50 per share.
Back in 2010, AIG Chief Executive Robert Benmosche said he was confident AIG would repay taxpayers at a profit. The closing of this transaction will mark the full resolution of America’s financial support of AIG, which the insurer says produced proceeds of approximately $7.6 billion for the Treasury.
“We are very pleased to repay 100 percent of all that America invested in AIG plus a total combined positive return—or profit—of $22.7 billion,” Benmosche said. “On behalf of the 62,000 employees of AIG, it is my honor and privilege to thank America for giving us the opportunity to keep our promise to make America whole on its investment in AIG plus a substantial profit. Thank you America. Let’s bring on tomorrow.”
Since September 2008, America committed a total of $182.3 billion in connection with stabilizing AIG during the financial crisis. Since then, through asset sales and other actions by AIG, America recovered $182.3 billion and earned a combined return of $22.7 billion, according to AIG.
After the closing of today's offering, Treasury will continue to hold warrants to purchase approximately 2.7 million shares of AIG common stock—the sale of which is expected to provide an additional positive return to taxpayers.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access