50 New Signs American International Group Inc (AIG)’s Management Is Setting Course for Shareholder Value

Though analysts and shareholders have been calling for dividends and share repurchases, the company has refrained from reinstating either until other goals are met.

CEO Robert Benmosche has focused the firm’s attentions on reducing debt, which has already saved the company millions in interest expenses. By doing so, Benmosche has set up AIG for leaner operations that may produce greater earnings as the economy continues to improve and revenue growth progresses. Though investors may be sullen about having to wait longer for capital distributions, the aim of management to make a leaner, more viable company going forward should be a welcomed strategy.

Reading between the lines
Though the purchase of some new jets may not seem to imply any bigger motivations of a company, if you analyze the intention of management in even the smallest actions, you can see how the pieces all fit together. With a capable and focused group of executives driving the insurer forward, AIG is not only set for the short term, but it will be ready to take advantage of the opportunities presented in the coming years of economic recovery.

The article 50 New Signs AIG’s Management Is Setting Course for Shareholder Value originally appeared on Fool.com and is written by Jessica Alling.

Fool contributor Jessica Alling has no position in any stocks mentioned. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: long January 2014 $25 calls on American International Group.

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