AIG 2014 Annual Report Download - page 175

ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES
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Dividends and Repurchases of AIG Common Stock
On February 13, 2014, our Board of Directors declared a cash dividend on AIG Common Stock of $0.125 per share, payable
on March 25, 2014 to shareholders of record on March 11, 2014. On May 5, 2014, our Board of Directors declared a cash
dividend on AIG Common Stock of $0.125 per share, payable on June 24, 2014 to shareholders of record on June 10, 2014.
On August 4, 2014, our Board of Directors declared a cash dividend on AIG Common Stock of $0.125 per share, payable on
September 25, 2014 to shareholders of record on September 11, 2014. On November 3, 2014, our Board of Directors declared
a cash dividend on AIG Common Stock of $0.125 per share, payable on December 18, 2014 to shareholders of record on
December 4, 2014.
On February 12, 2015, our Board of Directors declared a cash dividend on AIG Common Stock of $0.125 per share, payable
on March 26, 2015 to shareholders of record on March 12, 2015. The payment of any future dividends will be at the discretion
of our Board of Directors and will depend on various factors, including the regulatory framework applicable to us, as discussed
further in Note 17 to the Consolidated Financial Statements.
On August 1, 2013, our Board of Directors authorized the repurchase of shares of AIG Common Stock, with an aggregate
purchase price of up to $1.0 billion, from time to time in the open market, private purchases, through forward, derivative,
accelerated repurchase or automatic repurchase transactions or otherwise. On February 13, 2014, June 5, 2014 and October
31, 2014, our Board of Directors authorized increases to the August 1, 2013 repurchase authorization of AIG Common Stock of
an aggregate of $4.5 billion.
During 2014, we repurchased approximately 88 million shares of AIG Common Stock for an aggregate purchase price of
approximately $4.9 billion pursuant to this authorization.
In the second, third and fourth quarters of 2014, we executed five ASR agreements with third-party financial institutions. The
total number of shares of AIG Common Stock repurchased in 2014, and the aggregate purchase price of those shares, each
as set forth above, reflect our payment of approximately $3.1 billion in the aggregate to the financial institutions under the ASR
agreements and the receipt of approximately 53 million shares of AIG Common Stock in the aggregate, including the initial
receipt of 70 percent of the total notional share equivalent, or approximately 9.2 million shares of AIG Common Stock, under
an ASR agreement executed in December 2014. That ASR agreement settled in January 2015, at which time we received
approximately 3.5 million additional shares of AIG Common Stock based on a formula specified by the terms of the ASR
agreement.
On February 12, 2015, our Board of Directors authorized an additional increase to the August 1, 2013 repurchase
authorization of AIG Common Stock of $2.5 billion, resulting in an aggregate remaining authorization on such date of
approximately $2.5 billion. Shares may be repurchased from time to time in the open market, private purchases, through
forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise. The timing of any future share
repurchases will depend on market conditions, our financial condition, results of operations, liquidity and other factors.
Dividend Restrictions
Payments of dividends to AIG by its insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities.
See Note 20 to the Consolidated Financial Statements for a discussion of restrictions on payments of dividends by our
subsidiaries.