On Dec 30, 2014, shares of American International Group Inc (NYSE:AIG) scaled a new 52-week high of $56.79 following a series of encouraging news at the company.
Last month, AIG unveiled its new variable annuity – Polaris Select Investor. This product is designed to provide clients a broad investment platform for their long-term investments. Amid the rising demand among Americans for investment products that boost their financial futures, this variable annuity is expected to grab quite a share in the market, thereby providing AIG a competitive edge over the others.
Earlier this month, AIG launched AG Platinum Choice VUL, variable universal life insurance. This product is designed to provide death benefit protection, upside market potential, enhanced cash accumulation benefits for future financial needs and an opportunity to consistently offer death benefit throughout the policyholder’s lifetime. With lifetime coverage benefits, this product launch is expected to draw in more customers for the company leading to more revenue generation.
Previously, the company reported third-quarter earnings that had surpassed the Zacks Consensus Estimate and also improved year over year. This improvement was mainly driven by strong performance across all its segments, lower claims and interest expenses, as well as higher net realized gains and investment income. Moreover, AIG’s one-year return of 10.41% was higher than that of other industry players like American Financial Group Inc (NYSE:AFG), Aegon (NYSE:AEG) and OneBeacon Insurance Group Ltd. (NYSE:OB) who recorded returns of 7.61%, -20.03% and 2.58%, respectively.
The company also bought back about 24.8 million shares for $1.5 billion during the reported quarter, overall repurchasing shares about $3.4 billion until Nov 3 this year. Additionally, on Nov 3, 2014, the board of directors of AIG sanctioned a $1.5 billion share repurchase program, to be implemented gradually. This was backed by the successful completion of the share buybacks worth $2 billion and $1.0 billion stock that were authorized in Jun 2014 and Feb 2014, respectively.
AIG currently holds a Zacks Rank #2 (Buy).