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AIG
American International Group Inc - NYSE

7/9/2014, 11:24 PM ET
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  • Why AIG Is Our Favorite Insurer
    Valuentum Tue, Jun. 24 26 Comments

    Summary

    • We're not particular fans of the structural characteristics of the insurance industry -- please, no offense to those working at insurers.
    • Still, we think AIG is one of the most attractively-priced insurers. The company is trading at a large discount to book value.
    • The company's executive suite knows this and is buying back stock rapidly. We think shares are worth a look despite the challenging industry backdrop.
  • AIG Can Thrive Under New CEO
    Seeking Profits Wed, Jun. 11 3 Comments

    Summary

    • AIG announced its CEO Bob Benmosche will retire on September 1 after helping to turn the company around in the wake of the financial crisis.
    • Peter Hancock, who has helped to de-risk the Property Casualty unit, will be the new CEO and will continue to take a disciplined approach to risk.
    • Still, I expect Life Insurance to be the main driver of results thanks to growing assets and eventually rising rates.
    • Even with new management, shares are poised to reach book value of $65 within 12 months, and I would be a buyer here.
  • AIG Warrants Or AIG Common Shares? An Update On The Math
    Benjamin Sinclair Thu, Jun. 5 20 Comments

    Summary

    • The warrants have outperformed the common shares in recent months, but the warrants are still the bigger bargain.
    • A sensitivity analysis shows that the warrants are not nearly as risky as a normal call option.
    • The warrants are trading at a discount for all the wrong reasons, creating a perfect opportunity.
  • American International Group: Laughing All The Way To The Bank?
    Achilles Research Wed, May. 28 26 Comments

    Summary

    • Positive catalysts vastly outweigh potential downside risks.
    • AIG has one of the most appealing risk/reward ratios, not only in the insurance sector but in the entire stock market.
    • AIG's long-term warrants are an interesting alternative to AIG's common stock.
  • American International Group: A Book Value Bargain To Consider Now
    Bret Jensen Fri, May. 23 17 Comments

    Summary

    • American International Group has performed well this year in light of declining interest rates.
    • The stock is cheap on an earnings and book value basis. It should also be bolstered if interest rates start to rise again.
    • Sentiment is improving on the stock recently, it is cheap compared to competitors and should have nice upside ahead.
  • AIG: Better Late Than Never To Buy
    Seeking Profits Thu, May. 22 5 Comments

    Summary

    • On Wednesday, Goldman Sachs upgraded AIG to a buy, with a $63 price target, and while this call was a bit late, I believe it is right.
    • AIG can use excess capital to repurchase some stock and invest in its growing life insurance unit, which will deliver strong profits as rates rise.
    • As rates rise, AIG can earn more income on its investments, and a 1% increase in the Fed funds rate can increase AIG's earnings by $1.50.
    • AIG should trade 90-100% of book value as its business improves, which would push shares towards $60-$66.
  • 3 Reasons AIG Is Worth The Risk
    Chris Lau Tue, May. 20 9 Comments

    Summary

    • Hedge funds are decreasing their position in AIG.
    • Better balance sheet lowers risk in holding this insurance company.
    • 3 reasons to be bullish.
  • AIG: A Recap, And Refocus For Even More Outperformance
    Dylan Byrd Thu, May. 15 9 Comments

    Summary

    • AIG has had an excellent run over the past year-and-a-half, but the company is not done yet.
    • Varying catalysts over the next few years should help unlock value, including the recent sale of ILFC.
    • Other catalysts include the monetization of Deferred Tax Assets, as well as infrastructure spending which should pay off in increased ROE.
    • Any buybacks or a possible increase in treasury rates only compound the upside, while lower interest rates serve to increase the book value.
  • American International Group: Billion Dollar AerCap Windfall?
    Achilles Research Wed, May. 14 4 Comments

    Summary

    • ILFC sale to AerCap could lead to large potential windfall for AIG worth billions of dollars.
    • Sale to AerCap better solution than outright IPO.
    • Proceeds likely to be used for share repurchases/dividends. Strong Buy.
  • Has American International Group Reached An Inflection Point?

    Summary

    • AIG reported a mix of positive and negative performance during the first quarter of 2014.
    • AIG’s Property and Casualty business unit underwrote losses primarily due to high catastrophe loss claims during the quarter.
    • AIG’s Life and Retirement unit continued its growth momentum and saw a remarkable increase in assets under management leveraging on the demand of its products.
    • AIG may soon experience a turning point and is poised to focus on its core operation, insurance.
  • American International Group: Buy The Pullback, Fair Value $90 Per Share
    Achilles Research Wed, May. 7 34 Comments

    Summary

    • American International Group's stock mindlessly sold off after the company released first quarter results.
    • Smart investors use the pullback to purchase a leading insurance company at a 30% discount to book value.
    • American International Group can reasonably trade at $90 per share in 2016/2017.
  • AIG Looks Tasty On Any Pullback
    Quoth the Raven Tue, May. 6 7 Comments

    Summary

    • AIG's recent earnings report left a bit to be desired.
    • AIG continues to claw itself back after being decimated in '07 due to the financial crisis.
    • The company's massive selling point? It trades at about 19% below book value and is buying back shares aggressively.
  • Buy AIG Despite A Messy Quarter
    Seeking Profits Mon, May. 5 25 Comments

    Summary

    • AIG reported a messy quarter that sent shares lower by 3% despite better-than-expected operating income.
    • Underwriting at the PC unit was weak, though catastrophe losses made the performance look worse than it actually was.
    • Conversely, the life unit showed continued growth with record pre-tax income and will perform well as rates rise.
    • With shares trading significantly below book value of $65.49, I would buy AIG on any weakness.
  • AIG Is A Top Algorithmic Stock Pick
    I Know First Research Tue, Apr. 8 6 Comments

    Summary

    • AIG has been positioning itself to excel and these efforts are predicted to actualize.
    • AIG is undervalued compared to industry peers that are trading at premiums to book value.
    • Sanford Bernstein stated that American International Group could double over time from current levels.
    • The algorithm has held a bullish prediction on AIG for quite some time but the strength of the prediction has recently increased dramatically.
  • AIG: 'Double' From Here Debatable, But Good Upside Remains
    Bret Jensen Thu, Apr. 3 20 Comments

    Summary

    • Sanford Bernstein came out with comments today that American International can double over time.
    • The shares are undervalued compared with peers, and sport an attractive valuation.
    • The company has several catalysts that could boost the stock price nicely over the next 1-2 years.
  • Buy AIG To Profit Off Yellen
    Seeking Profits Thu, Mar. 20 7 Comments

    Summary

    • Janet Yellen signaled an increase in interest rates in about 12 months.
    • Higher rates will increase AIG's investment income and more deeply discount future claims.
    • With $6.25-$6.75 in 2015 earnings power, shares are very attractive at $50.
  • Follow Cooperman Into AIG
    Seeking Profits Tue, Mar. 11 8 Comments

    Summary

    • Leon Cooperman is bullish on AIG, seeing 25% upside.
    • Improving underwriting standards and rising rates will improve ROE over the next three years.
    • AIG is returning capital to shareholders, which is accretive at current prices.
    • AIG should trade within 90% of book value or $60.
AIG vs. ETF Alternatives
Company Description

American International Group Inc is a holding company. The Company, through its subsidiaries, provides insurance and related services in the United States and abroad.