Mon, Aug. 15, 1:05 PM
- AIG -- formerly readying an initial public offering of its United Guaranty mortgage insurance unit -- is instead nearing a deal to sell it for $3.4B, The Wall Street Journal reports.
- The insurer could announce an agreement with Arch Capital Group as soon as early this week, it says.
- An IPO would have left AIG with a majority stake in United Guaranty, but selling it outright would help the insurer speed up returning cash to shareholders.
- The unit has been a star performer at AIG lately, amid an environment of improving mortgage-insurance results on top of higher-quality underlying home loans in the U.S. recovery.
- It works fairly independently from the rest of AIG, making for a easier divestiture.
Jul. 1, 2015, 12:30 PM
- "This changes almost everything" in P&C, says KBW's Meyer Shields. "Ace (ACE +2%) is a very experienced and successful acquirer." The deal should help Ace better compete with rivals like AIG (AIG +1%) and Berkshire Hathaway (BRK.A, BRK.B).
- Merger presentation slides
- Unlike some other insurers focused on buybacks - including the acquired Chubb (CB +29%) - Ace and its CEO Hank Greenberg have been using capital for purchases, building scale and diversifying risk.
- Chubb CEO John Finnegan - previously set to retire at the end of 2016 - could be in for a nine-digit golden parachute should he be let go prior to that or resigns for reasons such as a reduction in responsibility or pay. Greenberg is set to lead the combined company.
- Previously: P&C stocks on the move after Chubb sale (July 1)
- Previously: ACE buying Chubb in cash and stock deal for $28.3B (July 1)
Aug. 6, 2014, 7:18 AM
- AIG agrees to the purchase of Ageas Protect from Belgium-based Ageas Group for about $305M. The deal is set to close in Q4.
- Ageas Protect offers term life, critical illness, and income protection coverage to U.K. consumers. It's been around since 2008 and a 4.8% share of new protection business in that country, producing premiums of £91.8M in 2013.
Feb. 20, 2014, 11:56 AM
- The ILFC purchase from AIG is still expected to close in Q2, says AerCap Holdings (AER -1.9%) in its Q4 earnings release. AIG will be an owner of 46% of AerCap after the transaction and will continue to report ILFC results on its books.
- AerCap adjusted EPS of $0.66 in Q4 gained 16% from a year ago, and full year adjusted EPS of $2.64 rose 35% from 2012.
- For 2013, the company purchased 38 aircraft for $1.8B. Committed future purchases as of the end of they ear are 44 aircraft for $3.5B. All committed purchases are on long-term leases with an average term of 11.8 years.
Dec. 16, 2013, 6:20 AM
Dec. 13, 2013, 3:24 PM
- There are too many "unknowns" on a potential AerCap (AER +4%) deal to buy ILFC (AIG +1%) to figure out what AER's balance sheet and income statement would look like afterwards, says Well Fargo's Gary Liebowitz, but based on the company's recent history, he pretty certain about a few things.
- AER will NOT: 1) Overpay for aircraft 2) Subject itself to excessive residual value risk by retaining older jets 3) Impair its ability to sell aircraft, or 4) Expose itself to significant future funding risks.
- He retains his Buy rating on AER with a price target of $26-$27.
- Previous coverage of the potential deal
Aug. 21, 2013, 1:57 AM
- New China Trust, which was the leader of the consortium that has agreed to acquire AIG's (AIG) aircraft-leasing business, reportedly withdrew from the $4.2B deal in May due to fears that New China's ties to the country's National Development & Reform Commission would cause a conflict of interests.
- The exit prompted other investors to pull out of the deal to buy International Lease Finance Corp. (ILFC) and made it difficult for the group to finance the deal. So far, it's raised $2.6B and missed three deadlines to make payments. The next one is due at the end of the month.
Aug. 15, 2013, 3:42 AM
- AIG (AIG) will reportedly give a Chinese consortium until next month to come up with the money needed to acquire 90% of the insurer's aircraft-leasing unit, International Lease Finance Corp (ILFC). The deal is worth $4.75B.
- The last deadline for closing the transaction expired on July 31 and AIG is now free to seek other buyers or take ILFC to IPO, the prospects for which have improved since AIG canceled a listing last year because of poor market conditions. The firm has even revived preparations for a possible investor roadshow.
Aug. 2, 2013, 2:07 AM
- AIG (AIG) is reportedly still in negotiations to sell its aircraft leasing unit, International Lease Finance Corp (ILFC), to a Chinese consortium for $4.8B even though the sides have missed the deadline of July 31 to close the deal.
- The parties now have the option of scrapping the transaction.
- AIG is keeping its options open, including listing ILFC or selling it to a different buyer.
Jul. 10, 2013, 8:05 AMAIG is in talks to buy Israeli insurer Clal Insurance, reportedly making an offer to purchase parent IDB Development's stake for just over $1B. AIG is stepping in as IDB stuggles keeping up with its debt service. Any deal, of course, would be subject to Israeli regulatory scrutiny which hasn't been the most friendly of late. | Jul. 10, 2013, 8:05 AM
Jun. 21, 2013, 5:06 PM
AIG (AIG) updates its registration statement for the potential IPO of International Lease Finance Corp. The company is expected to be sold to Chinese investors, but AIG was forced to extend the deadline recently due to slow progress on the deal. If the sale is completed, then there will be no offering, according to the statement. The buyers have until July 31st to complete the deal.| Jun. 21, 2013, 5:06 PM | 1 Comment
Jun. 17, 2013, 7:35 AM
Dec. 10, 2012, 10:47 AM
Dec. 9, 2012, 8:31 PMAIG agrees to the sale of an 80.1% stake in its plane-leasing unit - ILFC - for $4.23B, valuing the entire business at $5.28B, a bit less than the $5.5B bandied about on Friday. The good news: AIG's continued refocus on core operations, and the raising of cash to buy back shares. The bad news: The sale price is about two-thirds of ILFC's book value, and certainly less than what AIG had hoped it might fetch when it began talking about an IPO many moons ago. (PR) | Dec. 9, 2012, 8:31 PM | 20 Comments
Dec. 7, 2012, 10:18 AM
Dec. 7, 2012, 5:07 AMAIG (AIG) is reportedly in negotiations to sell a controlling stake in its aircraft-leasing unit, International Lease Finance, to a group that includes New China Trust, China Aviation Industry Fund, and Industrial & Commercial Bank of China. A deal could value ILFC, which AIG has said it wants to take to IPO, at $5.5B. | Dec. 7, 2012, 5:07 AM | 4 Comments