Seeking Alpha

Investors sell the news on AIG; -2.7% after Q3 results

  • Operating income ex-items of $0.96 per share is off 3% from a year ago.
  • Cash dividend paid by P&C and Life units to parent of $1.9B. Repurchased about 4M shares for total of about $192M, and redeemed $500 of debt. Issued $1B of debt. AIG Parent cash and liquid investments of $16.9B.
  • P&C Income of $1.04B up 33% as underwriting losses fell 69% to just $135M - combined ratio improves to 98 from 100.1. Premiums written fell 1% as reported, gained 3% excluding fx effects.
  • Life & Retirement operating income of $1.14B up 38% with inflows up $3B from a year ago helping to boost fee income. Net investment income of $2.47B falls 5%.
  • Mortgage Guaranty operating income of $43M vs. $3M a year ago as pre-property bust business fades further from view. New insurance written of $14.4B up 34%. Net premiums written of $272M up 24%.
  • Book value per share (excluding AOCI) of $62.68 vs. $60.59 a year ago.
  • CC tomorrow at 8 ET.
  • Q3 results, press release.
  • AIG -2.7% AH.
Comments (4)
  • campito
    , contributor
    Comments (55) | Send Message
     
    Good results,

     

    Even though there is some improvement in combined ratios, there are still lagging their peers.

     

    Also it would be good to hear about some positive developments on the ILFC front.

     

    I guess if it falls like in AH tomorrow it would be a great opportunity to add to our positions
    31 Oct 2013, 05:05 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1287) | Send Message
     
    How nice to be a insurance company that never faces a risk. They can collect the premiums, hold little or nothing against insured losses, declare big profits and reward themselves with bonuses and when the losses have to be paid out, make the ordinary waitress in Topeka Kansas foot the bill. And then collect bonuses even after that by bribing senators in congress.

     

    Frankly, AIG must stand for American Institution of Gangsters.
    31 Oct 2013, 09:04 PM Reply Like
  • Ardill
    , contributor
    Comments (3) | Send Message
     
    Please read a bit more about what happened. Actually, AIG was used as a proxy to rescue GS and others. AIG insured mortgage back securities that were rated by S&P. AIG was one of the victims of widespread mortgage and MBS fraud. As far I know, AIG is the only company that paid back more than 10% to taxpayers. I strongly recommend Michael Lewis's book 'Big Short'. It is a good book if you want to understand who the gangsters were :)
    Those people who received their bonuses for their perforance, brought AIG back to where it is and paid back to taxpayers.

     

    I am not an AIG employee or relative of an employee.
    31 Oct 2013, 09:46 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (887) | Send Message
     
    You know Ardill, Deja has a long history of posting comments like the one above and basically getting all his facts wrong. It's not worth the effort to try and set things straight. I can't confirm this, but there is also a rumor that Deja likes to curse the darkness too.
    31 Oct 2013, 10:19 PM Reply Like
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