- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
During AIG’s annual shareholders meeting, CEO Bob Benmosche said shares will be liquidated after September 4. This sale will help decrease volatility in AIG’s earnings.
In 2010, AIG spun off two-thirds of AIA as part of a package of asset sales to repay its $182 billion U.S. government rescue. Since then, fluctuations in AIA’s share prices have affected AIG’s earnings by causing large swings of quarterly gains or losses of more than $1 billion.
The bailed out insurer sold part of the stake in March, which raised approximately $6 billion. AIG was left with 18.6 percent of AIA — one of Asia’s three largest insurers. The sale also included the lock-up provision. Moreover, AIA shares have fallen 2.8 percent since the sale. The remaining stake is worth $7.6 billion at current levels.
Don’t Miss: FBI Investigation: JPMorgan in the Hot Seat.
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.