A leading American insurer has made official its exit from the aircraft-leasing business.
On Tuesday, American International Group filed documents stating its intent to sell 10.7 million shares in AerCap Holding NV, effectively ending its stake in the Dutch company.
AIG had already sold most of its AerCap shares in June through a secondary public offering. Previously, the insurer owned 97.6 million shares, or 46% of the company, after it sold its plane rental business to AerCap in a cash and stock deal valued at $7.6 billion.
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The move is part of a long series of sales by AIG in an attempt to boost profit by becoming a more narrowly focused insurer, particularly in the property/casualty and life insurance sectors. The sale of its aircraft-leasing business is expected to boost results, which most recently included a 5.4% increase in operating profit and a 41% decline in net income.
“The sale of our remaining ordinary shares of AerCap marks a further step in our efforts to enhance intrinsic value,” said AIG President and CEO Peter D. Hancock in a statement announcing the sale of the remaining AerCap stake. “It adds to AIG’s financial flexibility and provides us with an opportunity to maximize shareholder value — whether through continued balance sheet optimization and capital management, organic growth investment, or inorganic acquisitions that help us meet our customers’ needs.”
