AIG Buyback Plan Disappoints Some Investors

American International Group Inc (NYSE:AIG) announced a new $2 billion buyback authorization today, significantly lower than the $2.4 billion net cash proceeds from the sale of International Lease Finance Company (ILFC) that many investors expected to be rolled into company’s buyback program. Assuming this is the final buyback authorization for 2014, $3.4 billion in full-year buybacks will come in $500 million short of Sterne Agee projections. “Considering what is universally viewed as strong free cash flow generation, combined with the net proceeds from the recent closing of the ILFC sale, we believe the Street will view the authorization as modestly…