AIG 2014 Annual Report Download - page 311

ITEM 8 / NOTE 17. EQUITY
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Dividends
Payment of future dividends to our shareholders and repurchases of AIG Common Stock depends in part on the regulatory
framework that we are currently subject to and that will ultimately be applicable to us, including as a nonbank systemically
important financial institution under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd Frank) and a
global systemically important insurer. In addition, dividends are payable on AIG Common Stock only when, as and if declared
by our Board of Directors in its discretion, from funds legally available therefor. In considering whether to pay a dividend or
purchase shares of AIG Common Stock, our Board of Directors considers such matters as the performance of our businesses,
our consolidated financial condition, results of operations and liquidity, available capital, the existence of investment
opportunities, contractual, legal and regulatory restrictions on the payment of dividends by our subsidiaries, rating agency
considerations, including the potential effect on our debt ratings, and such other factors as our Board of Directors may deem
relevant.
On March 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on March 11,
2014. On June 24, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of record on
June 10, 2014. On September 25, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to shareholders of
record on September 11, 2014. On December 18, 2014, AIG paid a dividend of $0.125 per share on AIG Common Stock to
shareholders of record on December 4, 2014.
Repurchase of AIG Common Stock in 2014 and 2013
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. For the year ended December 31, 2013, we
repurchased approximately 12 million shares of AIG Common Stock for an aggregate purchase price of approximately $597
million pursuant to this authorization.
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. For the year ended December 31, 2014, we
repurchased approximately 88 million shares of AIG Common Stock for an aggregate purchase price of approximately $4.9
billion.
In the second, third and fourth quarters of 2014, we executed five accelerated stock repurchase (ASR) agreements with third-
party financial institutions. The total number of shares of AIG Common Stock repurchased in the twelve-month period ended
December 31, 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 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.
The timing of any future repurchases will depend on market conditions, our financial condition, results of operations, liquidity
and other factors.
AIG Common Stock Offerings by the Department of the Treasury and AIG Purchases of AIG Common Stock in 2012
Through registered public offerings, the Department of the Treasury disposed of all of its ownership of AIG Common Stock as
of December 31, 2012, from ownership of approximately 92 percent (1.7 billion shares) prior to the completion of the first
registered public offering initiated by the Department of the Treasury as selling shareholder in May 2011. During 2012, the
Department of the Treasury, as selling shareholder, completed registered public offerings of AIG Common Stock on March 13
(the March Offering), May 10 (the May Offering), August 8 (the August Offering), September 14 (the September Offering) and
December 14 (the December Offering). We participated as a purchaser in the first four 2012 offerings. Each of these
purchases was authorized by our Board of Directors.