- "Elevated expenses continue to impose a ceiling on the profitability of the property and casualty business," says analyst Joshua Shanker, cutting AIG to Hold from Buy with price target reduced to $55 from $58. "Management indicates that Fuji unit integration costs will keep expenses high through 2014, which suggests that core ROE may stagnate at around 6% for the foreseeable future."
- "While we believe cash flow will ultimately exceed core and GAAP EPS, we believe incremental buyers will need to see additional combined ratio improvement to be motivated to purchase AIG."
- Shares -1% premarket
- Monday: Leon Cooperman remains a buyer, seeing ROE of 10% and EPS of $6 per share