AIG Raises Money to Pay off New York Fed Payment
American International Group (NYSE: AIG) has announced that it has raised $27.71 billion in cash from its IPO and sale of Alico. The IPO took 10 days to collect this amount. The sum is enough to repay the credit facility the insurer had obtained from Federal Reserve Bank of New York.
- American International Group had offered IPO of its Asian life insurance business AIA.
- American International Group sold Alico to MetLife Inc.
American International Group has finalized the sale of Alico at $16.2 billion. Out of this consideration, $7.2 billion will be paid in cash. The company had sold AIA shares on October 22. It exercised the overallotment option on the sale on October 29.
American International Group will use the proceeds for repaying NY FED repayment. It will also make other bailout payments. The company refused to make any other announcement. The company’s recapitalization seeks to increase the speed of payment of bailout funds. These funds total $182.3 billion. These repayments will pay off NY FED in full. However, US treasury department will get to retain 92.1 percent right in the company.
AIG is a a global insurance company.
Key Financial Stats
Valuation
- Price/Earnings(TTM)-
- Price/Cash Flow-0.50
- Price/Sales (TTM)0.07
- Price/Book1.63
Financial Strength
- Quick Ratio (MRQ)-
- Current Ratio (MRQ)-
- LT Debt to Equity (MRQ)38.64
- Total Debt to Capital (MRQ)38.64
- Return on Equity-
Assets
- Asset Turnover0.10
- Asset per Employee-
- Inventory Turnover-
Per Share Data
- Earnings (TTM)-66.68
- Current P/E Ratio-
- Cash Flow-82.00
- Annual Dividend0.00
- Book Value25.81
- EBITDA9.10
Profitability
- Market Cap-66.68
- Gross Margin (TTM)-
- Operating Margin (TTM)9.10
- Profit Margin (TTM) -11.90
Management Effectiveness
- Return on Equity (TTM)-
- Return on Assets (TTM)-1.20%
- Return on Investment (TTM)-4.70%
