Benmosche hails insurer’s “new beginning”
American International Group has executed its recapitalisation plan and repaid the US government bailout it received in 2008.
The insurance group has repaid the $21bn outstanding balance under its credit facility from the Federal Reserve Bank of New York and exchanged the various forms of government support it received for AIG common shares.
As a result the US Treasury department will own 92% of AIG’s common shares. AIG expects the department to sell its stake over time, subject to market conditions.
“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,” said AIG chief executive Robert Benmosche in a statement. “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.”
He added: “Today truly marks a new beginning. We recognize that we have to stand on our own and meet the expectations of the marketplace.”
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