AIG Repays $4B to US Taxpayers
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Price: $80.50 +3.17%
Overall Analyst Rating:
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Dividend Yield: 2.5%
Revenue Growth %: +5.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.5%
Revenue Growth %: +5.4%
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American International Group Inc. (NYSE: AIG) said Monday that it has paid back nearly $4 billion to the U.S. taxpayer, marking the single largest payment made by the bailed-out insurer since receiving funds from the government at the height of the economic meltdown.
AIG's payments to the Federal Reserve Bank of New York Credit Facility brings its principal balance to about $30 billion; with the outstanding balance, excluding fees and interest, now standing at just over $15 billion.
“This is continuing tangible evidence of AIG’s progress in repaying the American taxpayers,” said AIG President and CEO Robert H. Benmosche. “AIG is getting stronger every day. We still have more work to do, but we will finish the job and make sure we repay the American taxpayers.”
AIG is nearly 80 percent owned by the U.S. government and was rescued by US taxpayers in September 2008 to avoid collapsing. In addition to the Fed credit facility, the U.S. Treasury holds roughly $49 billion in preferred share of the insurer.
The repayment follows a move by Lease Finance Corp., the insurer’s aircraft leasing business, in which the company sold $4.4 billion in debt to investors, effectively funding the repayment.
“ILFC (Lease Finance) has demonstrated today further progress in stabilizing its finances and buttressing ILFC’s balance sheet,” Benmosche said. “Closing on the ALICO transaction remains on track and we continue to work diligently on the initial public offering for AIA.”
Shares of AIG are up 21 cents to $35.38 in midday market movement on Monday.
AIG's payments to the Federal Reserve Bank of New York Credit Facility brings its principal balance to about $30 billion; with the outstanding balance, excluding fees and interest, now standing at just over $15 billion.
“This is continuing tangible evidence of AIG’s progress in repaying the American taxpayers,” said AIG President and CEO Robert H. Benmosche. “AIG is getting stronger every day. We still have more work to do, but we will finish the job and make sure we repay the American taxpayers.”
AIG is nearly 80 percent owned by the U.S. government and was rescued by US taxpayers in September 2008 to avoid collapsing. In addition to the Fed credit facility, the U.S. Treasury holds roughly $49 billion in preferred share of the insurer.
The repayment follows a move by Lease Finance Corp., the insurer’s aircraft leasing business, in which the company sold $4.4 billion in debt to investors, effectively funding the repayment.
“ILFC (Lease Finance) has demonstrated today further progress in stabilizing its finances and buttressing ILFC’s balance sheet,” Benmosche said. “Closing on the ALICO transaction remains on track and we continue to work diligently on the initial public offering for AIA.”
Shares of AIG are up 21 cents to $35.38 in midday market movement on Monday.
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