Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

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

American International Group Inc (NYSE:AIG)Investors in American International Group Inc (NYSE:AIG) are enjoying some lift-off this morning as the insurer is up 1.6% just after 1 p.m. EDT. Though headlines this morning were singularly focused on one segment of the company’s operations, the news shows a common focus of American International Group Inc (NYSE:AIG)’s management that investors should be excited about for future opportunities for shareholder value.

Flying high
This morning’s news centers around a new deal between American International Group Inc (NYSE:AIG)‘s International Leasing Finance Corp, an aircraft leasing company, and Embraer, the world’s largest manufacturer of commercial jets up to 120 seats. ILFC has finalized an order for 50 new jets from Embraer, with the option for another 50 jets at a later time.

Though this headline isn’t anything exceptional for a jet leasing firm, the interesting twist comes from the fact that American International Group Inc (NYSE:AIG) has been trying to sell ILFC for the past few years and is currently waiting for a group of Chinese financial firms to close a signed deal for the operations for $4.2 billion. The Chinese consortium has already missed two deadlines, so investors and Wall Street are watching to see if the deal goes through after all.

American International Group Inc (NYSE:AIG)’s and ILFC’s management has already stated they are focused on getting the current deal closed, but are open to new deals or an IPO if it cannot be resolved. In the mean time, the purchase of new jets for the leasing company is in response to customer demand, signaling that management is still willing to make commitments that will help the company in the long term should the current deal fall through.

So why should investors care?
It may not seem like it, but the purchase of new jets for ILFC is just one more example of American International Group Inc (NYSE:AIG)‘s management’s focus on the long-term success of the company. Though there is a deadline for the sale of ILFC at the end of the month, ILFC’s current CEO, Henri Courpron, isn’t leaving it up to the buyers to satisfy customer needs if the deal does go through. Instead, moving forward with the purchase shows investors that the company is willing to spend the time and resources to keep the operations viable for the long term regardless of the sale.

AIG’s management as a whole has been displaying the same sort of resolve in other areas of the business, most notably with capital distributions.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.