With the sale last week of 636.9 million shares of American International Group, Inc. (AIG) common stock for $20.7 billion, the U.S. Department of Treasury and the Federal Reserve have now recovered a combined total of $197.4 billion from their $182.3 billion bailout of the once-troubled insurer.
The sale reduces U.S. government ownership of AIG to about 15.9%, down from a high of 92%. And, according to Best's Insurance News, the U.S. government expects to gain another $8.1 billion when it sells its last remaining shares in AIG.
Now that the U.S. government is a minority shareholder, AIG could face additional regulation as a savings and loan holding company, Best's Insurance News adds in its September 14, 2012 article. Some of the new regulations are still being finalized as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
AIG, through its insurance subsidiaries, has been an important participant in the U.S. structured settlement market for many years both as a purchaser and as a provider of structured settlement annuities.
Industry estimates of structured settlement annuity premium sold by AIG subsidiaries during the past 10 years provide one perspective of AIG's significant role in the U.S. structured settlement market as well as the impact of the U.S. government bailout on AIG's structured settlement annuity production. AIG's estimated annual share of the U.S. structured settlement annuity market appears in parentheses. Source: annual compilation of U.S. structured settlement annuity premium compiled by Melissa Evola.
- 2002 - $1.179 billion (19%)
- 2003 - $1.195 billion (20%)
- 2004 - $1.221 billion (20%)
- 2005 - $1.316 billion (21%)
- 2006 - $1.463 billion (24%)
- 2007 - $1.468 billion (24%)
- 2008 - $1.454 billion (23%)
- 2009 - $0.429 billion (8%)
- 2010 - $0.499 billion (9%)
- 2011 - $0.395 billion (11%)
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