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More on AIG Q4 earnings: Book value/share (excluding AOCI) of $57.87, +15.5% Y/Y. P&C...

More on AIG Q4 earnings: Book value/share (excluding AOCI) of $57.87, +15.5% Y/Y. P&C division loss of $945M thanks to $2B Sandy hit - the company posted an operating profit of $290M even with that. Premiums written of $7.8B, flat Y/Y. Life and Retirement income of $1.1B vs. $912M a year ago. Conference call at 8 ET tomorrow. Shares +3.7% AH. (PR)
Comments (21)
  • DeepValueLover
    , contributor
    Comments (8304) | Send Message
     
    BV compounding nicely...
    21 Feb 2013, 04:41 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (792) | Send Message
     
    This recovery story is still only just beginning.
    21 Feb 2013, 06:06 PM Reply Like
  • ahouseoforange
    , contributor
    Comments (310) | Send Message
     
    $50 by June for sure!
    21 Feb 2013, 08:08 PM Reply Like
  • philipmax
    , contributor
    Comments (251) | Send Message
     
    AIG is going to grow to its former glory. Only problem, the stock price will have to go to $1500/sh to reach this former glory.
    21 Feb 2013, 08:08 PM Reply Like
  • Ghosts of Kariela
    , contributor
    Comments (152) | Send Message
     
    Not really there were splits, compare market caps
    21 Feb 2013, 08:38 PM Reply Like
  • philipmax
    , contributor
    Comments (251) | Send Message
     
    This is how I calculated: stock before the meltdown in Sept 2007 ~$75. reverse split 1:20 , so multiply 75by 20=$1500. N'est pas?
    21 Feb 2013, 09:28 PM Reply Like
  • BlueVelvet
    , contributor
    Comments (41) | Send Message
     
    Philip, The number of shares had changed a lot.
    21 Feb 2013, 09:45 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8304) | Send Message
     
    So you think AIG must have a market cap of $2.46 trillion to reach its former glory?

     

    I don't think your math is correct.
    21 Feb 2013, 09:49 PM Reply Like
  • philipmax
    , contributor
    Comments (251) | Send Message
     
    Sure! They were reduced to 1/20th of the outstanding shares before the reverse split. That is, unless there was leakage and the number of shares were increased by newly minted stock options exercises and gov't intervention. Oh! Ye! The market cap may very well had been in the trillions prior to the debacle.

     

    Don't have figures in front of me, but I remember the outstanding shares were nearly 4B before the split and now should be in the 200+/- M.
    21 Feb 2013, 10:07 PM Reply Like
  • Kraken
    , contributor
    Comments (542) | Send Message
     
    AIG's market cap was never in the trillions. If the company was really worth a few trillion, that would mean they would have insured pretty much all the policies in the country. The collapse alone of an institution of that size would have sent our economy back to the stone ages. Check your numbers again.
    21 Feb 2013, 10:55 PM Reply Like
  • speedofov
    , contributor
    Comments (91) | Send Message
     
    Wasn't it a 10 to 1 reverse split, not 20 to 1?
    22 Feb 2013, 02:19 AM Reply Like
  • philipmax
    , contributor
    Comments (251) | Send Message
     
    1:20 reverse split. I know I took a hit on outstanding.

     

    C had a 1:10 reverse split at about the same time.
    22 Feb 2013, 01:01 PM Reply Like
  • Michael Clark
    , contributor
    Comments (8466) | Send Message
     
    Very funny headline. AIG 'excluding the cost of Sandy'.....

     

    But Sandy is one of the costs of doing business. Of course, all businesses to well if we exclude the costs of doing buisness...
    22 Feb 2013, 03:18 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    The point was that AIG made a profit in the Q even w/a $2B hit from Sandy. Pretty impressive, and probably why the stock is up 4%.
    22 Feb 2013, 06:41 AM Reply Like
  • Roke6362
    , contributor
    Comments (24) | Send Message
     
    The point is with p&c carriers, they do separate "normal" loss activity from "cat" losses like Sandy. The majority of normal losses are paid for with AIG funds, whereas "cat" losses are usually paid for through some form of reinsurance arrangement. The total loss was much more than $2B, but the remainder of it (for AIG) was risk-transferred to one or more reinsurance carriers.
    22 Feb 2013, 11:39 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8304) | Send Message
     
    Historic storms are a RARE cost of doing business. If a Sandy came along annually then AIG and all other insurance companies would NOT insure against storms in the Northeast.
    22 Feb 2013, 12:48 PM Reply Like
  • B4ngZ00m
    , contributor
    Comments (101) | Send Message
     
    Wish I knew what it meant. Jeez, I hate being a newbie.
    22 Feb 2013, 06:23 AM Reply Like
  • campito
    , contributor
    Comments (47) | Send Message
     
    Combined ratio 125%???
    22 Feb 2013, 06:24 AM Reply Like
  • philipmax
    , contributor
    Comments (251) | Send Message
     
    It means that the payout was 25% greater than premium income. This is not a good thing for insurance companies. They would like the ratio to be 75%. That is; for every $1 in premiums they pay out $.75.
    22 Feb 2013, 02:00 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (540) | Send Message
     
    Wasn't it expected to spike after Sandy?
    22 Feb 2013, 02:04 PM Reply Like
  • philipmax
    , contributor
    Comments (251) | Send Message
     
    Yes everyone indeed expected it, but, it could have been a lot worse.. That is why the stock is up even when they had an adverse ratio for the quarter.
    22 Feb 2013, 03:49 PM Reply Like
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