American International Group Inc(AIG)- NYSE
  • Wed, Sep. 28, 3:16 AM
    • Former AIG Chairman Hank Greenberg took the witness stand yesterday to defend against claims that he orchestrated two sham deals to hide the insurer's financial condition from shareholders.
    • Greenberg said he became aware of serious problems at AIG's auto-warranty business as early as 1998, but began taking steps to correct them the following year, and disagreed with the characterization that he was a "hands-on CEO."
    | Wed, Sep. 28, 3:16 AM | 1 Comment
  • Tue, Sep. 27, 2:28 AM
    • After 11 years of legal maneuvers, Hank Greenberg, the former chief executive of AIG, will take the witness stand today during his civil fraud trial with New York's Attorney General.
    • Greenberg and AIG's former CFO, Howard Smith, are accused in part of engineering bogus reinsurance transactions to bolster reserves, and allegedly orchestrated other transactions that allowed the company to convert insurance losses into investment losses.
    | Tue, Sep. 27, 2:28 AM | 1 Comment
  • Mon, Sep. 26, 3:13 PM
    • In what doesn't sound like great news for the already-yield-starved insurance industry, cash balances are "ticking upward," says Zach Buchwald, head of BlackRock's insurance asset-management operation.
    • Buchwald: “In today’s environment, where every basis point is so precious, within your core fixed income, we want to be investing wisely and generating the best risk-adjusted returns we can, and a large cash balance doesn’t help.”
    • Nearly half of 315 insurers surveyed globally expect to boost cash holdings in coming months - that's up from 36% a year ago, says BlackRock. At issue are poor performance in alternative investments and credit concerns following a sizable narrowing in spreads this year.
    • Struggling insurers are past the point of expecting rising interest rates, says Buchwald. So - other than cash - where else will the money go? Allocations to private-equity appear to be set to rise, and outfits like AIG are turning to direct lending. At MetLife (NYSE:MET), commercial real estate loans hit a record last year.
    • Other interested parties: PRU, LNC, MFC, SLF, PRI, VOYA
    | Mon, Sep. 26, 3:13 PM | 1 Comment
  • Wed, Sep. 21, 11:20 AM
    | Wed, Sep. 21, 11:20 AM | 45 Comments
  • Fri, Sep. 16, 8:44 AM
    • The buyer is Canada Pension Plan Investment Board, and AIG will walk away with about $240M in cash.
    • Ascot and AIG founded the syndicate in 2001, and the two will maintain their strategic partnership.
    | Fri, Sep. 16, 8:44 AM | 1 Comment
  • Tue, Sep. 13, 4:27 PM
    • Thanks to AIG's $0.32 per share declared dividend, the strike price on the insurer's TARP warrants is trimmed to $44.5525 per share from $44.5826 previously. The number of shares of AIG common upon warrant exercise edges up to 1.010 from 1.009.
    • When issued, the warrants were struck at $45 per share. They expire in 2021.
    | Tue, Sep. 13, 4:27 PM | 22 Comments
  • Mon, Sep. 12, 2:33 AM
    • More than 11 years after civil charges were filed, New York's case against Hank Greenberg, the former chief executive of AIG, goes to trial this week.
    • Greenberg and AIG's former CFO, Howard Smith, are accused in part of engineering bogus reinsurance transactions to bolster reserves, and allegedly orchestrated other transactions that allowed the company to convert insurance losses into investment losses.
    | Mon, Sep. 12, 2:33 AM | 6 Comments
  • Tue, Aug. 23, 1:17 PM
    • AIG (AIG +0.4%) is in early discussions to sell insurance operations connected with Lloyd’s of London to Canada’s biggest pension fund, WSJ reports.
    • The talks are part of AIG’s efforts to improve its results by narrowing its focus and returning more than $25B in capital to shareholders, while an acquisition would mark Canada Pension Plan Investment Board's latest move to establish itself as a significant player in the global insurance industry, the report says.
    • AIG is minority owner of Ascot Underwriting Holdings, which manages a Lloyd’s syndicate for which AIG provides the capital.
    | Tue, Aug. 23, 1:17 PM
  • Fri, Aug. 19, 8:46 AM
    • Tallying up the total starting with Sept. 2008's sale of AIG's London airport stake, and ending with last week's agreement to sell United Guaranty for $3.4B, Bloomberg finds the insurer has divested itself of nearly $100B in assets over that eight-year period.
    | Fri, Aug. 19, 8:46 AM | 3 Comments
  • 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.
    | Mon, Aug. 15, 1:05 PM | 7 Comments
  • Mon, Aug. 8, 8:55 AM
    • American International Group (NYSE:AIG) is added to the group of stocks rated at Conviction Buy List at Goldman Sachs.
    • The GS team cites broad macro factors in making the bullish call on AIG.
    • Shares of AIG are up 0.83% premarket to $59.59 on light volume.
    | Mon, Aug. 8, 8:55 AM | 2 Comments
  • Wed, Aug. 3, 3:49 PM
    • AIG's rapid progress on CEO Peter Hancock's restructuring plan allowed profit to rise 6% year-over-year even as the insurer shrunk itself, writes Aaron Back.
    • The planks of that plan - expense discipline, returning capital to shareholders, and a pruning of the P&C business - are all being realized. Operating expenses fell 11% from a year earlier, and $7.9B has been returned to owners through dividends and buybacks - putting AIG head of its target of $25B over two years.
    • As for P&C, net premiums written fell by about 20%, and the accident loss ratio dipped 420 bps to 62.4%, putting the company close to its 60% target.
    • Bottom line: ROE rose to 8.6% from 6.8% a year earlier - the goal is 9% by next year.
    • The biggest risk at this point may be those stubborn interest rates. If they stay at current levels, it would reduce operating income by $250M-$350M in 2017 relative to current expectations.
    • Shares +7.1% to $57.99.
    • Previously: AIG higher after beat and boost to buyback (Aug. 2)
    | Wed, Aug. 3, 3:49 PM | 3 Comments
  • Tue, Aug. 2, 5:41 PM
    • American International Group (NYSE:AIG) declares $0.32/share quarterly dividend, in line with previous.
    • Forward yield 2.36%
    • Payable Sept. 29; for shareholders of record Sept. 15; ex-div Sept. 12.
    | Tue, Aug. 2, 5:41 PM
  • Tue, Aug. 2, 4:35 PM
    • Q2 after-tax operating income of $1.1B or $0.98 per share vs. $1.9B and $1.39 one year ago. This quarter's result was held back by net loss reserve on workers' comp reserve of $0.36 per share; also by a decline in earnings from market-sensitive assets (hedge funds investments?) of $0.44 per share.
    • Another $3B in share buybacks is authorized. In the first six months of the year, the company bought back $6.2B in stock and $263M in warrants. Since the end of Q2, AIG has repurchased another $698M of stock. With today's $3B boost, the authorization is now about $4B. Return on equity in Q2 of 8.6% vs. 6.8% a year ago.
    • The dividend is left steady at $0.32 per share.
    • CEO Peter Hancock: "We have executed more quickly and smoothly than expected and our confidence in reaching our 2017 financial targets is high."
    • Book  value per share (excl. AOCI) of $75.45 up from $73.40 three months earlier and $72.97 at start of year. Excluding DTA, BVPS of $61.03 up from $58.52 last quarter.
    • Property and casualty adjusted combined ratio of 89.5 improves from 94.6 a year ago. Personal Insurance expense ratio falls 7.0 points to 40.0. Excluding FX, firmwide general operating and other expenses down 11%.
    • CC tomorrow at 8 ET
    • Previously: American International Group beats by $0.05 (Aug. 2)
    • Shares +2.9% after hours
    | Tue, Aug. 2, 4:35 PM | 27 Comments
  • Tue, Aug. 2, 4:29 PM
    • American International Group (NYSE:AIG): Q2 EPS of $0.98 beats by $0.05.
    • Press Release
    | Tue, Aug. 2, 4:29 PM | 3 Comments
  • Mon, Aug. 1, 5:35 PM