American International Group Inc (NYSE:AIG) regroups and strategizes
Last Friday, American International Group Inc (NYSE:AIG) was trading at its usual spot and was among the day’s volume leaders. There was a 1.8% rise in its stock on Friday. What are bolstering AIG are the plans that have been announced by the company. It will be initiating a repurchase program worth almost $1B, and will pay 10 cents/share in dividends.
A bright spot
This dividend outlay is the 1st time the company has paid a dividend since the economic downslide in 2008. Many value investors still prefer holding AIG stock since it trades at a 30 percent discount to its book-value parity and at a PEG below 1.0. AIG has also reported its 2013 Q2 earnings report. The company has earnings per share of $1.12 and 16% gain y-o-y. Revenue rose 6.7% and both, the top and the bottom-line figures topped most analyst projections.
On Friday, Robert Benmosche the Chief Executive Officer said that they want to keep their options open. In this effort, the firm is working on an IPO. In addition, it is also in talks with a certain group of Chinese investors in connection with its International Lease Finance Corp unit. Mr Benmosche said that the negotiations had missed three deadlines and that there have been some complications.
This was specifically due to the countries involved as well as the complex nature of the aircraft leasing business in general. The United States reported a pretty weak July employment report. With reference to this, Mr Benmosche said that the country has a strong core but the space in which there is scope for job-growth is a little limited.
American International Group Inc (NYSE:AIG) is an international insurance company. It provides a variety of life insurance, casualty insurance, mortgage insurance, retirement products as well as numerous other financial services in over 130 countries.