AIG Extends Tax Asset Protection Plan
December 14 2016 - 4:20PM
Business Wire
American International Group, Inc. (NYSE: AIG) announced today
that its Board of Directors has adopted Amendment No. 2 to AIG’s
Tax Asset Protection Plan (the Plan). The Plan, which is designed
to protect AIG’s substantial tax assets, was scheduled to expire on
January 8, 2017. Amendment No. 2 to the Plan extends the expiration
date of the Plan to December 14, 2019 (subject to other earlier
termination events as described in the Plan). AIG has significant
U.S. federal net operating loss carryforwards and foreign tax
credits.
AIG’s ability to use its tax attributes may be significantly
limited if there were an “ownership change” as defined under
Section 382 of the Internal Revenue Code and related Internal
Revenue Service pronouncements. In general, an ownership change
will occur when the percentage of AIG’s ownership (by value) of one
or more “5-percent shareholders” (as defined in the Code) has
increased by more than 50 percent over the lowest percentage owned
by such shareholders at any time during the prior three years
(calculated on a rolling basis).
The Plan is designed to reduce the likelihood that AIG will
experience an ownership change by discouraging any person from
becoming a 5-percent shareholder. There is no guarantee, however,
that the Plan will prevent AIG from experiencing an ownership
change.
AIG’s Board of Directors has the discretion under certain
circumstances to exempt acquisitions of AIG securities from the
provisions of the Plan. The Plan may be further amended by the
Board at any time. AIG expects to ask shareholders to ratify
Amendment No. 2 to the Plan at the next Annual Meeting of
Shareholders. AIG’s Board of Directors also expects to recommend to
shareholders to approve a three year extension of the tax asset
protection provisions in AIG’s Amended and Restated Certificate of
Incorporation at the next Annual Meeting of Shareholders.
Additional information regarding Amendment No. 2 to the Plan
will be contained in a Form 8-K and in a Registration Statement on
Form 8-A/A that AIG is filing with the Securities and Exchange
Commission.
Certain statements in this press release constitute
forward-looking statements. These statements are not historical
facts but instead represent only AIG’s belief regarding future
events, many of which, by their nature, are inherently uncertain
and outside AIG’s control. It is possible that actual results will
differ, possibly materially, from the anticipated results indicated
in these statements. Factors that could cause actual results to
differ, possibly materially, from those in the forward-looking
statements are discussed throughout AIG’s periodic filings with the
SEC pursuant to the Securities Exchange Act of 1934.
American International Group, Inc. (AIG) is a leading global
insurance organization. Founded in 1919, today AIG member companies
provide a wide range of property casualty insurance, life
insurance, retirement products, mortgage insurance and other
financial services to customers in more than 100 countries and
jurisdictions. These diverse offerings include products and
services that help businesses and individuals protect their assets,
manage risks and provide for retirement security. AIG common stock
is listed on the New York Stock Exchange and the Tokyo Stock
Exchange.
Additional information about AIG can be found at www.aig.com and
www.aig.com/strategyupdate | YouTube: www.youtube.com/aig |
Twitter: @AIGinsurance | LinkedIn:
http://www.linkedin.com/company/aig. These references with
additional information about AIG have been provided as a
convenience, and the information contained on such websites is not
incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent
third parties. Certain property-casualty coverages may be provided
by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not
protected by such funds.
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version on businesswire.com: http://www.businesswire.com/news/home/20161214006083/en/
American International Group, Inc.Investors:Liz Werner,
212-770-7074elizabeth.werner@aig.comorFernando Melon,
212-770-4630fernando.melon@aig.comorMedia:Jennifer Hendricks
Sullivan, 212-770-3141jennifer.sullivan@aig.com
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