Benmosche Suggests AIG Within 'Striking Distance' of Repaying 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) Chief Executive Officer Robert Benmosche said Friday that the insurer is looking to repay the billions of taxpayer dollars it took to stay afloat in September 2008.
AIG is looking to divest two non-U.S. life insurance businesses, AIA Group Ltd. and American Life Insurance Co. to help repay the bailout funds that totaled $182.3 billion.
“We have commenced discussions with the U.S. government on the process and terms of a complete government exit,” Benmosche said in a memo to employees on Friday. “Depending of course on market conditions, which could remain volatile, we expect to make meaningful progress in 2010 on repaying the Federal Reserve Bank of New York, and over time fully repaying all of our obligations to taxpayers.”
The U.S. government currently holds an 80 percent stake in the insurer, which will have to improve the remaining core pieces of its company to be able to fully repay the taxpayers.
AIG is planning an initial public offering of AIA after its $35.5 billion deal to sell the business to Prudential PLC (NYSE: PRU) fell through.
Benmosche said that once the insurer sells off the life division, AIG will be within “striking distance” of being able to repay the Federal Reserve.
Shares of AIG are up 2.63 percent to $40.95 in late market movement Friday.
AIG is looking to divest two non-U.S. life insurance businesses, AIA Group Ltd. and American Life Insurance Co. to help repay the bailout funds that totaled $182.3 billion.
“We have commenced discussions with the U.S. government on the process and terms of a complete government exit,” Benmosche said in a memo to employees on Friday. “Depending of course on market conditions, which could remain volatile, we expect to make meaningful progress in 2010 on repaying the Federal Reserve Bank of New York, and over time fully repaying all of our obligations to taxpayers.”
The U.S. government currently holds an 80 percent stake in the insurer, which will have to improve the remaining core pieces of its company to be able to fully repay the taxpayers.
AIG is planning an initial public offering of AIA after its $35.5 billion deal to sell the business to Prudential PLC (NYSE: PRU) fell through.
Benmosche said that once the insurer sells off the life division, AIG will be within “striking distance” of being able to repay the Federal Reserve.
Shares of AIG are up 2.63 percent to $40.95 in late market movement Friday.
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