Weak P&C results bubble up at AIG


After an initial pop on the earnings release last night, AIG turns lower by 1% in premarket action as investors look past some big headline numbers, and hone in on continued weakness in property and casualty, where adjusted underwriting results continued to deteriorate.

"P&C margin deteriorated Q/Q, a disappointing trend," says Barclays' Jay Gelb, cutting his price target to $56 from $60. He still expects share repurchases to accelerate, perhaps reaching $10B by year-end 2015.

Maintaining his Buy and $59 price target, BofA's Jay Cohen also notes worse-than-expected P&C results.

"We think disappointing property-casualty results will likely put near-term pressure on the stock," says Janney's Larry Greenberg, maintaining his Neutral rating.

Previous earnings coverage

CC begins in 5 minutes

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Comments (10)
  • DeepValueLover
    , contributor
    Comments (11346) | Send Message
     
    AIG really should concentrate on this weakness before amping up the life insurance lines.
    14 Feb 2014, 09:03 AM Reply Like
  • Ford289HiPo
    , contributor
    Comments (1086) | Send Message
     
    AIG should be a penny stock.
    14 Feb 2014, 10:51 AM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1404) | Send Message
     
    Normally, I dismiss comments like yours, but in this case I'll respond --- that is ridiculous statement and shows how little you know about a company that has paid back every cent it barrowed from the government.

     

    AIG is a buy right here and I increased my holdings 20% today on the dip. This stock will see $60 long before it ever sees $40 again.
    14 Feb 2014, 05:13 PM Reply Like
  • Kamil Kolacek
    , contributor
    Comments (1109) | Send Message
     
    It was. It is not now. It is severely undervalued now. This penny stock will be mighty once again shortly.
    14 Feb 2014, 07:56 PM Reply Like
  • papayamon
    , contributor
    Comments (1390) | Send Message
     
    intially sorry i sold my options when the stock was 51, but now happy i did so :). still interested, but i'm going to wait for a pullback.
    14 Feb 2014, 11:34 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (1396) | Send Message
     
    Papayamon: You still holding a boat load of shares?
    14 Feb 2014, 11:55 AM Reply Like
  • papayamon
    , contributor
    Comments (1390) | Send Message
     
    nope sold it all off. very heavy in 2 stocks now, hk and xco - a third of my portfolio in each till the end of march. i don't see much upside to aig over the next few months, and i think there will be buying opportunities on the dips. will probably buy 2016 leaps deep in the money in my ira.

     

    P&C will have to improve before we see much upside, and that means there's no need to invest for the next quarter, unless there's a bargain on a selloff. i think we'll see 45 before next earnings.
    16 Feb 2014, 12:58 AM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1754) | Send Message
     
    AIG, being regulated by the FED, will have to comply with CCAR stress tests this year. Thus, buybacks, share offerings, dividend payouts, possibly even bonus payments, will all have to be approved by the FED as it's deemed a non-bank SIFI.
    14 Feb 2014, 01:07 PM Reply Like
  • Kamil Kolacek
    , contributor
    Comments (1109) | Send Message
     
    Yes, but that is ok for now, such heavy Fed oversight will not last forever.
    14 Feb 2014, 07:58 PM Reply Like
  • The Long Tail of Finance
    , contributor
    Comments (1754) | Send Message
     
    >>...such heavy Fed oversight will not last forever.

     

    Why do you think that?
    15 Feb 2014, 04:28 PM Reply Like
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