NU Online News Service, Nov. 5, 3:44 p.m. EDT
Robert H. Benmosche, president and chief executive officer of American International Group, now predicts that AIG's repayment of a line of credit it has with the Federal Reserve Bank of New York (FRBNY) could be complete before the end of this year, a company spokesperson confirmed.
AIG had previously announced that repayment to the FRBNY would close by the end of the 2011 first quarter.
Additionally, the spokesperson confirmed statements Mr. Benmosche made today about the possibility of AIG offering an undisclosed amount of stock in early 2011.
AIG will own less than 8 percent of its common stock once it uses $22 billion in available Troubled Asset Relief Program funds to purchase an equal amount of interest in each special purpose vehicle (SPV) holding American Group Ltd. and American Life Insurance Company (ALICO). AIG will then give the interest in the SPVs to the Treasury, which will allow the Treasury to sell stock to the public.
This may happen at the same time AIG offers its IPO.
The Treasury, which had owned 80 percent of AIG after the bailout two years ago, is to own 92.1 percent of the common stock of AIG after it converts the $49.1 billion of preferred shares it has under TARP into about 1.66 billion shares of common stock.
The Treasury has said it expects to earn a profit from its investment in AIG.
Mr. Benmosche said in a message on AIG's website that he is "more confident" that AIG will "repay taxpayers with a profit."
The chief executive also said he was thankful for the words of support following the announcement that he has cancer.
"I feel great," he said. "I'm jogging three miles every day."
Mr. Benmosche said he has every intention of staying on as CEO to "see this through."
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
