AIG
American International Group IncNYSE
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  • Yesterday, 12:40 PM
    • The FRBNY's William Dudley isn't concerned about the post-election jump in rates at the long end of the curve, and says the Fed is about to start following suit at the short end.
    • Even the dovish Charles Evans from the Chicago Fed admits inflation is getting closer to the central bank's target, and the labor market is close to full employment.
    • The 10-year Treasury yield had moved as high as 2.45%, but has pulled back to 2.40%, still up 1.5 basis points on the session.
    • On the regulatory front, Fed Governor Daniel Tarullo on Friday set himself up as the chief defender of the current bank regulatory regime, but whether his voice will be heard is a different story given the incoming administration, which looks to be staffed with those favoring a far lighter regulatory hand.
    • Financial sector stocks today are about doubling the S&P 500's 0.5% advance.
    • TBTF banks: Bank of America (BAC +2.3%), Citigroup (C +1.8%), JPMorgan (JPM +1.3%), Wells Fargo (WFC +0.9%), Goldman Sachs (GS +1.7%), Morgan Stanley (MS +0.4%)
    • Regional lenders: U.S. Bancorp (USB +0.7%), PNC Financial (PNC +0.4%), KeyCorp (KEY -0.8%), Fifth Third (FITB +0.5%)
    • Insurers: MetLife (MET +0.3%), Lincoln National (LNC), AIG (AIG +0.2%)
    • Brokerage: Schwab (SCHW +0.9%), E*Trade (ETFC +0.9%)
    • Custodial banks: State Street (STT +0.5%), Northern Trust (NTRS +1%)
    • Private equity: Blackstone (BX +0.9%), KKR (KKR +1%)
    • Asset Management: BlackRock (BLK +0.1%), Franklin Resources (BEN +0.5%), Affiliated Managers (AMG +1.8%)
    | Yesterday, 12:40 PM | 6 Comments
  • Wed, Nov. 30, 11:45 AM
    • While the pick of ex-Goldmanite and Hollywood player Steven Mnuchin for Treasury Secretary can hardly be called "draining the swamp," Pantheon's Ian Shepherdson says it should make Wall Street happy.
    • In his first public comments after being selected, Mnuchin promised to "kill" swaths of Dodd-Frank.
    • Also making Wall Street (and other bankers/insurers/brokers) happy today is another big move higher in interest rates, with the 10-year Treasury yield up 10 basis points to 2.394%.
    • The S&P 500 is just marginally higher, but the KBE is ahead 1.9%, and the KRE 2%. XLF +1.35%
    • Bank of America (BAC +3.4%), Citigroup (C +1.9%), JPMorgan (JPM +1.5%), Wells Fargo (WFC +1.8%), Morgan Stanley (MS +2.1%), Goldman Sachs (GS +3.9%), U.S. Bancorp (USB +1%), PNC Financial (PNC +1.4%), KeyCorp (KEY +2.2%), Fifth Third (FITB +2.5%), Regions Financial (RF +2.9%), BB&T (BBT +2.4%), SunTrust (STI +2%)
    • MetLife (MET +2%), AIG (AIG +0.8%), Lincoln National (LNC +1.7%), Prudential (PRU +1.1%), Hartford (HIG +1.3%)
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, BTO, IYG, FNCL, SEF, FXO, RYF, FINU, RWW, XLFS, FINZ, JHMF, FAZZ, FNCF
    | Wed, Nov. 30, 11:45 AM | 54 Comments
  • Mon, Nov. 21, 8:05 AM
    • Part of the company's investor day on Friday, CIO Doug Dachille said boosting AIG's allocation to residential mortgages was one of his "key initiatives."
    • Source: Alistair Gray in the FT
    • Insurers as an industry are looking everywhere for yield, and the residential mortgage market is an untapped area - S&P Global Ratings' Deep Banerjee says the industry's aggregate exposure to that market was just 1-2%.
    • For AIG, it has less than $4B of mortgages on its $515B balance sheet.
    • Dachille says one of the reasons for that small amount was the company's exposure to housing via United Guaranty, but that operation is being sold.
    • Don't look to ring AIG up for a mortgage. The insurer instead intends to acquire the paper from direct mortgage lenders.
    • Earlier investor day coverage and slides
    | Mon, Nov. 21, 8:05 AM | 1 Comment
  • Fri, Nov. 18, 8:16 AM
    • Normalized ROE has been about 9% through 2016's first nine months, and roughly 10% is targeted for next year. Where's the improvement coming from? Capital returns will mostly offset the headwinds from the interest rate environment and the impact of divestitures. Efficiency and underwriting improvements, though, should add about 100 basis points to ROE.
    • Recently completed and pending business sales are expected to result in about $4.3B in cash to AIG. The company has targeted $25B for capital returns - $11.6B has been completed YTD, and there's another $3.6B under the current buyback authorization. Another $12B-$17B should be available in the future thanks to those sales, dividends and tax-sharing payments, life reinsurance, and asset allocation shift.
    • Presentation slides
    • Webcast to begin at 8:30 ET
    | Fri, Nov. 18, 8:16 AM | 16 Comments
  • Mon, Nov. 14, 9:53 PM
    • Bruce Berkowitz's Fairholme Fund showed ownership of 1.7M common shares of Bank of America (NYSE:BAC) as of Sept. 30 - that's down from 13M three months earlier. As for the TARP options, Fairholme held about 14.5M of them, down from 17.3M.
    • Berkowitz cut his holdings of AIG TARP options to 4.4M from 5.3M the previous quarter.
    • SEC form 13F
    | Mon, Nov. 14, 9:53 PM | 36 Comments
  • Mon, Nov. 14, 11:33 AM
    • The major averages are stuck in the red, but the XLF is up 2.2% and the KBE +3% as financial sector investors mull a world of higher interest rates and lowered regulation.
    • REITs continue to fall, but thanks to this fall's sector reclassification, those names are no longer in the financial indexes.
    • Regional banks: Regions Financial (RF +6.9%), New York Community (NYCB +2.9%), KeyCorp (KEY +3.1%), PNC Financial (PNC +2.4%), Fifth Third (FITB +4%), SunTrust (STI +3%), M&T (MTB +3.1%)
    • Insurers: MetLife (MET +2.2%), Lincoln (LNC +3.2%), AIG (AIG +2.1%), Hartford (HIG +2.3%), Travelers (TRV +1.4%)
    • Online brokerage: Schwab (SCHW +3.6%), Ameritrade (AMTD +2.5%)
    • Asset management: Franklin Resources (BEN +3.2%), Och-Ziff (OZM +4.5%), Invesco (IVZ +2.2%), T. Rowe Price (TROW +2.8%), BlackRock (BLK +0.4%)
    | Mon, Nov. 14, 11:33 AM | 8 Comments
  • Thu, Nov. 10, 12:32 PM
    • The regulatory regime will be "more constructive" under a President Trump, says management at the company's investor day.
    • Webcast and presentation slides
    • Of the post-election surge in interest rates, CIO Steve Goulart says he's a fan, and that the move is "favorable to us."
    • Ahead of today's meeting, the company announced a $3B buyback plan.
    • MET's 4.7% gain in this session puts the two-day advance at about 12% - the best two-day move for the stock since 2009.
    • Other insurers: Prudential (PRU +3.1%), Manulife (MFC +7.2%), Sun Life (SLF +8.3%), Lincoln Financial (LNC +2%), Primerica (PRI +10.6%), Voya (VOYA +6.2%), AIG (AIG +3.2%)
    | Thu, Nov. 10, 12:32 PM | 6 Comments
  • Wed, Nov. 9, 11:26 AM
    • The 10-year Treasury yield is up a whopping 10 basis points to 1.96%, surely a boon to yield-starved insurers. But for the larger players like MetLife (MET +5.2%), Prudential (PRU +4.2%), and AIG (AIG +1.6%), they may be able to look forward to end of their SIFI designations, and the boosted regulation and capital requirements that go with it (MetLife, of course, has already won a court case challenging its SIFI designation).
    • Trump is likely to nominate two or three new Fed governors, says Capital Alpha Partners' Ian Katz, who doesn't expect Janet Yellen to seek to stay on when her term as chairman expires in 2018. He doesn't expect this to happen right away, but look for a Trump Treasury to de-designate AIG and Prudential (and presumably drop the MetLife appeal).
    • Others enjoying the higher rates: Lincoln National (LNC +6.6%), Voya Financial (VOYA +5.2%), Primerica (PRI +10.4%)
    | Wed, Nov. 9, 11:26 AM
  • Thu, Nov. 3, 10:26 AM
    • MetLife (MET +2.5%), Prudential (PRU +3.5%), Lincoln National (LNC +6.7%), and AIG (AIG -4.5%) all reported after the bell last night, and the first three cruised past estimates, but AIG, not so much. AIG, of course, is more exposed to the P&C side of the industry, and results there are still in need of improvement.
    • Capital returns: AIG slowed repurchases during Q3, but boosted its buyback by $3B; Lincoln National lifted its dividend 16%, and bought back $200M of stock in Q3, with share float down 8% Y/Y; Prudential returned nearly $1B in dividends and buybacks.
    | Thu, Nov. 3, 10:26 AM
  • Thu, Nov. 3, 9:31 AM
    • The company slowed its buyback pace in Q3 because of hurricane season, says CEO Peter Hancock, but he promises faster repurchases in Q4.
    • A review of actuarial assumptions cost the company $0.23 per share in Q3, and nearly all of that was thanks to people living longer than expected on a legacy block of structured settlements underwritten before 2010.
    • The sale of United Guaranty is moving along, and AIG expects to book a $450M gain at closing.
    • Earnings call presentation slides
    • Shares -4.1% premarket
    • AIG Earnings Center
    | Thu, Nov. 3, 9:31 AM | 8 Comments
  • Wed, Nov. 2, 5:50 PM
    • American International Group (NYSE:AIG) declares $0.32/share quarterly dividend, in line with previous.
    • Forward yield 2.11%
    • Payable Dec. 22; for shareholders of record Dec. 8; ex-div Dec. 6.
    | Wed, Nov. 2, 5:50 PM
  • Wed, Nov. 2, 4:36 PM
    • Q3 after-tax operating income of $1.1B or $1.00 per share vs. $691M and $0.52 one year ago. Expectations were for $1.21, and the big miss looks to be from an after-tax charge of $0.37 per share related to updated mortality assumptions for legacy structured settlements.
    • Helping to ease the blow, the company announces authorization for an additional $3B in share repurchases, bringing the total to $4.4B. There were $2.3B of buybacks in Q3; through Nov. 2, AIG has bought back $10.8B in stock.
    • Book value per share (excl. AOCI) of $85.02 up 2% for the quarter; excluding the DTA as well was up 1% to $62.39. Normalized ROE of 7.1% up from 5.9% a year ago.
    • CEO Peter Hancock: Remain committed to 2017 targets, and is ahead of plan on expense management. A six point reduction in adjusted commercial accident year loss ratio is still targeted despite volatile quarterly results. In Q3, the adjusted ratio improved 1.9 points from Q3 one year ago.
    • For the year's first nine months, general operating and other expenses fell 12% from the same period in 2015.
    • Conference call tomorrow at 8 ET
    • Previously: American International Group misses by $0.21 (Nov. 2)
    • Shares -2.9% after hours
    | Wed, Nov. 2, 4:36 PM | 3 Comments
  • Wed, Nov. 2, 4:22 PM
    • American International Group (NYSE:AIG): Q3 EPS of $1.00 misses by $0.21.
    • Press Release
    | Wed, Nov. 2, 4:22 PM | 12 Comments
  • Tue, Nov. 1, 5:35 PM
  • Wed, Oct. 26, 9:40 AM
    • Prior limits for property terrorism insurance was $250M.
    • In expanding its appetite for terrorism risk, AIG notes new and proprietary terrorism risk engineering services as well as enhanced risk selection tools.
    • "Demand from our clients for better protection against this risk has been strong," says George Stratts, president of Property and Special Risks.
    | Wed, Oct. 26, 9:40 AM | 2 Comments
  • Tue, Oct. 18, 8:27 AM
    • Sold to Fairfax Financial (OTCPK:FRFHF) are AIG's consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela, and Turkey. Fairfax will also acquire renewal rights for the portfolio of local business written by AIG's operations in Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia.
    • The deals are all-cash and total $240M.
    • Alongside, Fairfax will become AIG's main strategic multinational network partner. For AIG, this continues management's goal of focusing on core operations in major economies with the best potential for profitable growth.
    • Prem Watsa: "We are very excited to partner with AIG and to have the LATAM group of companies and operations in CEE and Turkey join the Fairfax family."
    | Tue, Oct. 18, 8:27 AM | 3 Comments