American International Group CEO Invests in Company

Insider purchases 80,000 shares

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May 24, 2017
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Brian Duperreault (Insider Trades), newly appointed president and CEO of American International Group Inc. (AIG), bought 80,000 shares on May 18. The average price per share was $61.48, for a total transaction of $4,918,400.

American International Group is a commercial and individual insurer, serving customers in the U.S. and Canada. It has a market cap of $58.824 billion.

Duperreault’s purchase is his sole transaction with the company since 2013, and only one of two insider trades with American International Group in 2017 to date. Executive Vice President Philip Fasano (Insider Trades) sold 6,000 shares for $63.59 per share on Feb. 27. The total number of insider shares purchased or sold each year was less than 4 and amounted to less than 50,000 shares, excluding 2014, which included a company buyback of 16.2 million shares. For more information about insider transactions of American International Group, click here.

In the quarter ended March 31 American International Group reported net income of $1.19 billion, up from net loss of $183 million reported in the previous year’s first quarter. This corresponds to net income per share of $1.18 and -16 cents in the first quarters of 2017 and 2016. Return on equity was also up from -0.8% to 6.3% when comparing the same periods of time. Former American International Group CEO Peter Hancock commented that the company’s first-quarter results “highlight the success of the actions taken to execute on [the company’s] strategy, strengthen [AIG’s] balance sheet and improve earnings quality.”

Brian Duperreault was appointed president, CEO and director on May 14 after formerly serving as chairman and CEO of Hamilton Insurance Group and working with American International Group for 21 years prior to that appointment. Duperreault commented that he looks forward “to working with AIG’s global team to build upon this momentum” and previous progress made and “grow the business and continue delivering innovative solutions and extraordinary service to clients.”

According to GuruFocus.com information, American International Group has a business predictability rank of 1 out of 5 stars. For more information about business predictability rank, click here.

In the first quarter John Burbank (Trades, Portfolio) sold 82,395 shares of American International Group for an average price of $64.21 per share after investing in the company in the previous quarter for an average per share price of $62.79.

On the other hand, Richard Pzena (Trades, Portfolio) increased his stake by 6.97%, purchasing 416,152 shares of the company at an average per share price of $64.21. Pzena previously decreased his stake in every quarter since the second quarter of 2013, leading to a total estimated gain of 79% since the second quarter of 2011. For more information about guru trades with American International Group, click here.

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