AIG Mulling Big Expansion of Massive Share Repurchase

June 8, 2014 by Dan Reichl

American International Group Inc., the largest commercial insurer in the U.S. and Canada, said it may repurchase as much as an additional $2 billion of common stock after selling its aircraft-leasing business.

The insurer has bought back about $418 million of shares since the end of the first quarter, according to a statement today from the New York-based company. It has $2.12 billion remaining on its share-repurchase authorization.

AIG sold International Lease Finance Corp. to AerCap Holdings NV last month for $3 billion in cash and about $4.6 billion in AerCap stock. The insurer got rid of about $26 billion of liabilities in the deal.

The ILFC sale “and our strong capital position have allowed us to authorize this share repurchase, which enables us to return a portion of our sale proceeds directly to our shareholders,” AIG Chairman Robert S. Miller said in the statement.

AIG shares were little changed today at $54.95 in New York. They have gained 7.6 percent this year, beating the 5 percent advance of the Standard and Poor’s 500 Index.