American International Group (AIG) Tops Q4 EPS by 38c; Boosts Dividend 25%
AIG also declared a quarterly dividend of $0.125 per share, or $0.5 annualized. This is a 25% increase from the prior dividend of $0.10.
“AIG’s strong performance in both the fourth quarter and the full year of 2013 represents another successful milestone in our journey to further build on AIG’s core insurance operations,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “Global demand for our products and services, combined with our reputation for innovation, has helped to reestablish AIG as one of the world’s preeminent insurance companies.
“I am also pleased to announce the Board’s capital management decisions to increase AIG’s quarterly dividend by 25 percent and authorize the repurchase of up to an additional $1.0 billion worth of AIG Common Stock, both of which reaffirm the Board’s confidence in our strategy and allow us to return a portion of our success directly to our shareholders,” added Mr. Benmosche.
“Our profits illustrate the individual and combined earnings power of all three of our core insurance operations, as well as our ongoing commitment to capital management,” continued Mr. Benmosche. “With another year of solid performance under our belts, I am confident that we have positioned ourselves for strong growth and profitability in all of our operating businesses. Most importantly, this foundation will enable us to focus our energy on our customers.
“In addition, our fourth quarter severance charge represents another step in AIG’s continued transformation. We are increasingly a more agile, focused, and sustainable company. As we think about the long-term future of our company, we must be able to more efficiently meet and exceed the evolving expectations of our global customer base,” Mr. Benmosche concluded.
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