8-KEarnings & ResultsMaterial AgreementsShareholder Matters+2

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Material Agreement (Feb 14, 2017)

Filed February 14, 2017For Securities:AIG

Summary

This Form 8-K filing by American International Group, Inc. (AIG) on February 14, 2017, primarily provides updates on material agreements and corporate actions. A significant development is the completion of an Aggregate Excess of Loss Reinsurance Agreement entered into by AIG's indirect subsidiaries with National Indemnity Company (NICO), a subsidiary of Berkshire Hathaway. This agreement reinsures certain long-tail commercial lines liabilities, aiming to reduce AIG's exposure to these specific risks. The filing also announces the company's financial results for the quarter and year ended December 31, 2016, via an attached press release, and details actions related to its upcoming 2017 Annual Shareholder Meeting, including dividend declaration and share repurchase authorization.

Key Highlights

  • 1AIG subsidiaries entered into an Aggregate Excess of Loss Reinsurance Agreement with National Indemnity Company (a Berkshire Hathaway subsidiary) to reinsure certain long-tail commercial lines liabilities.
  • 2The reinsurance transaction closed on February 2, 2017.
  • 3A related trust agreement and parental guarantee agreement with Berkshire Hathaway are also detailed.
  • 4The filing incorporates by reference AIG's press release dated February 14, 2017, reporting its Q4 and full-year 2016 financial results.
  • 5AIG's Board of Directors declared a cash dividend of $0.32 per share on its common stock.
  • 6The company's Board of Directors authorized the repurchase of additional shares of AIG Common Stock.
  • 7Deadlines for shareholder proposals and director nominations for the 2017 Annual Meeting of Shareholders are updated.

Frequently Asked Questions

The Aggregate Excess of Loss Reinsurance Agreement allows AIG's subsidiaries to transfer certain long-tail commercial lines liabilities to National Indemnity Company, a subsidiary of Berkshire Hathaway. This is intended to reduce AIG's exposure to these specific risks and potentially improve its risk profile.

The reinsurance agreement was entered into on January 20, 2017, and the transaction, including the related trust and parental guarantee agreements, closed on February 2, 2017.

This filing incorporates by reference AIG's press release dated February 14, 2017, which reports the company's results of operations and financial condition for the quarter and year ended December 31, 2016.

AIG announced that its Board of Directors declared a cash dividend of $0.32 per share on its common stock and authorized the repurchase of additional shares. The filing also sets new deadlines for shareholder proposals and director nominations for the 2017 Annual Meeting of Shareholders.