American International Group, Inc. (AIG, Financial)
AIG has been working to improve their flexibility and long-term profitability, and that focus was seen in the announcement of a strategic partnership with Blackstone, Inc. AIG will sell a 9.9% stake of its Life & Retirement business to Blackstone for $2.2 billion and will also sell certain housing assets for $5.1 billion. This deal will provide the company with the financial flexibility to deleverage the business and increase returns to shareholders. AIG has increased their dividend payout for eight consecutive years. The board has increased the stock repurchase authorization to $6 billion and management is targeting at least $2 billion in repurchases for the second half of 2021. They also intend to reduce the debt load by $2.5 billion. The company’s combined ratio has been improving throughout 2021 and is expected to continue to see improvement due to fewer business disruptions and pandemic-related claims for the remainder of the year. CEO Peter Zaffino has been executing well.
From Jeff Auxier (Trades, Portfolio)'s Auxier Asset Management fall 2021 market commentary.
