by Christopher Freeburn | August 2, 2013 8:53 am
Shares of American International Group (AIG) surged almost 5% in pre-market trading on Friday after the company announced plans to reward shareholders for the first time since its federal bailout.
On Thursday, AIG said that it would pay a quarterly dividend of 10 cents a share. The company also plans to buyback $1 billion of its shares. The moves come as the insurance provider reported adjusted operating EPS of $1.12, which handily topped the 86 cents expected by Wall Street, Bloomberg noted.
AIG almost imploded in 2008 when credit protection that it had issued on hundreds of billions of dollars worth of securities was threatened by the sudden devaluing of underlying credit default swaps, causing the company to suffer a liquidity crisis. The U.S. government intervened and spent $182.3 billion to bail out the insurance group.
Last year, AIG sold $60 billion in assets to help completely repay its loans to the government.
During its most recent quarter, AIG said that its net income rose to $2.73 billion, up from $2.33 billion during the same period last year.
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