AIG enters into $500m accelerated share repurchase

American International Group (AIG) has entered into an accelerated share repurchase (ASR) agreement with Citibank to repurchase $500 million of AIG’s common stock.

The ASR is part of AIG’s existing share repurchase authorisation of $2 billion.

Under the ASR agreement, AIG will receive initial delivery of approximately 7.66 million shares on February 25, 2020, representing approximately 70 percent of the number of shares of common stock initially underlying the ASR agreement based on the closing price of AIG’s common stock of $45.70 on February 24, 2020.

The total number of shares to be repurchased will be based on the volume-weighted average price of AIG’s common stock during the term of the transaction, less a discount, and subject to potential adjustments pursuant to the terms and conditions of the ASR agreement.

The final settlement of the transaction under the ASR agreement is expected to be completed no later than March 31, 2020.

Brian Duperreault, AIG’s chief executive officer, said: “We remain committed to delivering long-term sustainable value to all of our stakeholders. While AIG 200, investing in our businesses and reducing leverage are key components of our capital management strategy, we continue to be mindful of the importance of deploying capital through a balanced approach that also includes returning capital to investors. As a result, in addition to our recently announced redemption of $350 million of 4.35% Callable Notes Due 2045, we are proceeding with this $500 million share buyback.”