|AIG EXECUTES PLAN TO REPAY U.S. GOVERNMENT|
U.S. Treasury Department Holdings Are Exchanged For AIG Common Stock
U.S. Treasury Department to Exit Ownership Stake in AIG Over Time
AIG Poised to Emerge As Financially Strong Company
NEW YORK, Jan 14, 2011 -- American International Group Inc. (AIG) announced today that it has executed its previously announced recapitalization plan with the U.S. Department of the Treasury (Treasury Department), the Federal Reserve Bank of New York (FRBNY), and the AIG Credit Facility Trust (the Trust), including repaying in full the approximately $21 billion outstanding balance under the credit facility extended by the FRBNY, and exchanging various forms of government support into common shares, resulting in the Treasury Department owning approximately 92 percent of AIG's common shares. AIG expects that over time the Treasury Department will sell its stake in AIG subject to market conditions.
"Today is a very important day that should be viewed as a testament to the unrelenting dedication of terrific people both in the government and at AIG," said Robert H. Benmosche, AIG President and Chief Executive Officer. "Today, AIG, with the support of countless people, has accomplished a huge goal that many people once thought impossible: completely repaying the Federal Reserve Bank of New York. Now, we will continue to focus on strong business performance for the benefit of all of our stakeholders, including our largest shareholder, the Treasury Department. We remain grateful for the extraordinary assistance that taxpayers provided during the financial crisis of 2008, and we continue to believe they will realize a profit on their investment in AIG.
"Today truly marks a new beginning," Mr. Benmosche continued. "We recognize that we have to stand on our own and meet the expectations of the marketplace. That's not new to us. Based on our success over the last two years in stabilizing our businesses, retaining our clients, achieving momentum in sales, restoring relationships with distribution partners, and returning to normal rates of employee turnover, we are confident that we can continue to build long-term value for all of our stakeholders, including U.S. taxpayers, and demonstrate through our actions going forward that we are worthy of investor confidence."
Certain statements in this press release, including in particular the timing of sales of AIG's common stock by the Treasury Department, constitute forward-looking statements. These statements are not historical facts but instead represent only AIG's belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG's control, including the timing and magnitude of any sales by the Treasury Department. It is possible that actual results will differ, possibly materially, from the anticipated results indicated in these statements. Factors that could cause actual results to differ, possibly materially, from those in the forward-looking statements are discussed throughout Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and in Part II, Item 1A. Risk Factors of AIG's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2010, AIG's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 and of AIG's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2010, throughout Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and in Part I, Item 1A. Risk Factors of AIG's Annual Report on Form 10-K for the year ended December 31, 2009 (including Amendment No. 1 on Form 10-K/A filed on March 31, 2010 and Amendment No. 2 on Form 10-K/A filed on August 24, 2010) and in AIG's Current Report on Form 8-K, filed December 8, 2010.
American International Group, Inc. (AIG) is a leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo.
SOURCE: American International Group Inc.
American International Group Inc.