American International Group (NYSE:AIG) Welcomes Salesforce CIO Juan Perez to Board of Directors

American International Group (NYSE:AIG) recently appointed Juan Perez, CIO of Salesforce, to its Board, an event complemented by organizational changes including Jon Hancock assuming new responsibilities. During the same period, AIG reported a net loss exceeding $1 billion for the past fiscal year, a sharp contrast to previous net gains, amidst a steady share buyback program and consistent dividend declarations. The company's share repurchase activity and dividend strategies might have provided some support to its stock price, which saw a modest 1.44% increase over the last month. This movement came at a time when major indexes, such as the Dow and S&P 500, were positioned for weekly losses, with declines initiated by the drop in UnitedHealth shares. While navigating industry challenges and financial results, AIG's strategic board appointments and ongoing shareholder return initiatives may have played roles in stabilizing its market performance relative to broader market declines.

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The past five years have been quite eventful for AIG, culminating in a total shareholder return of 101.00%. Key events shaping long-term performance include consistent shareholder returns via a robust share repurchase program, with 25.58 million shares repurchased since October 2024 for US$2.77 billion. This activity has countered recent fluctuations in earnings, including a reported net loss of US$1.40 billion for 2024. Despite the challenging earnings landscape, AIG's share buybacks have helped steady performance, ensuring competitive returns despite broader market pressures. During this timeframe, AIG paid reliable quarterly dividends consistently, reinforcing investor confidence.

Executive leadership shifts have also played a role in AIG's performance, with the recent appointment of Juan Perez to the Board and Keith Walsh as CFO in November 2024. Changes like these suggest adaptations in governance that support AIG's strategic objectives, aligning with initiatives like debt financing plans aimed at refining financial structure. However, despite these efforts, AIG significantly underperformed the U.S. market and the insurance industry over the last year, emphasizing the broader challenges it faces in maintaining growth momentum.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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