Fri, Feb. 27, 2:43 PM| 10 Comments
Wed, Feb. 18, 3:40 PM| 4 Comments
Fri, Feb. 13, 7:22 PM
- Dan Loeb added new stakes in Citigroup (NYSE:C), Alibaba (NYSE:BABA), AIG, EMC and Allergan (NYSE:AGN) in the fourth quarter as the latest 13F from his Third Point fund indicates.
- The Alibaba addition of 2.8M shares to an existing 7.2M-share position brings Third Point to 10M shares. A new Citigroup position is 25M shares.
- Meanwhile, a 400K-share stake in Allergan is a new position, as is 7M shares in EMC and 3.5M shares of AIG.
- Loeb also unloaded a 750K-share position in FedEx (NYSE:FDX).
- Overall Third Point increased the value of equity holdings 27%, to $11.09B.
- After hours: BABA -0.5%; AGN +0.5%.
Thu, Feb. 12, 6:21 PM
- Due to a $562M workers compensation discount reduction and adverse prior-year reserve development, AIG's after-tax op. income fell to $1.4B in Q4 from $1.7B a year ago. Book value per share excluding AOCI and DTA rose 12% Y/Y to $58.23.
- Commercial Insurance pre-tax op. income rose 26% Y/Y to $1.22B, with Property Casualty accounting for $935M. Consumer Insurance pre-tax op. income fell 21% to $923M, with retirement accounting for $722M.
- Property Casualty net premiums written -3% to $4.69B, and net premiums earned -2% to $5.21B. Personal Insurance net premiums written -3% to $2.87B, and net premiums earned -5% to $2.93B.
- $1.5B was spent on buybacks in Q4 ahead of a new $2.5B buyback authorization, and $4.9B over the whole of 2014.
- AIG -1.6% AH to $51.62.
- Q4 results, PR
Thu, Feb. 12, 4:46 PM| 4 Comments
Thu, Feb. 12, 4:08 PM
Wed, Feb. 11, 5:35 PM
Fri, Feb. 6, 9:50 AM
- Financials have been mercilessly pounded in 2015 as hopes for higher interest rates looked like they might be dashed yet again, but today's blowout jobs number - firmly putting a June rate hike on the table - has brought in the dip-buyers.
- The major averages are flat, but the XLF is up 1.4%. The Regional Bank ETF (KRE +2%) and the Bank ETF (KBE +2.1%) are doing even better.
- Among the yield-starved banking names: Bank of America (BAC +3.1%), JPMorgan (JPM +2.6%), Citigroup (C +2%), Regions Financial (RF +4%), KeyCorp (KEY +3%), PNC Financial (PNC +2.9%), SunTrust (STI +2.3%), Zions (ZION +3.6%), Synovus (SNV +2.3%).
- Insurers: MetLife (MET +2%), Prudential (PRU +3.2%), Lincoln National (LNC +4.6%). AIG (AIG +1.5%).
- Trust banks: BNY Mellon (BK +2.7%) State Street (STT +1.9%), Northern Trust (NTRS +2.3%).
- Online brokers (currently getting killed on money-market fee rebates): Schwab (SCHW +4.5%), TD Ameritrade (AMTD +3.5%), E*Trade (ETFC +2.1%).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
Mon, Feb. 2, 8:24 AM
- "Going forward, we expect that AIG’s property and casualty business will be the main driver of further increases in value," says Bruce Berkowitz in Fairholme Fund's (MUTF:FAIRX) annual report, talking about his largest position.
- If management is able to deliver underwriting margins and expense efficiencies consistent with its peer group, then the company’s book value and stock price will meaningfully increase. We shall soon see."
- Berkowitz notes AIG's book value increased by about 15% in 2014 to $77.35, keeping the stock price at a substantial discount.
- Previously from annual report: Berkowitz added to Frannie holdings (Feb. 2)
Wed, Jan. 28, 4:03 PM
- A study done by researchers from New York and Columbia Universities found that premiums were slightly higher for policies offered on state-run health exchanges where there were higher numbers of competitors, precisely the opposite effect that supposedly characterizes more intense competition.
- Overall, average monthly premiums were $5.71 higher per additional insurer (p<0.001). In addition, average monthly premiums were $3.18 higher per additional insurer for identical plans offered.
- The analysis focused on the prices for each unique insurance plan offered on the exchanges in each geographic rating area. The number of rating areas varied widely in the 34 states examined, from only one in NJ, NH and DE to 67 in FL.
- The authors acknowledge that the higher premiums may be due to higher cost areas (urban vs rural) where more insurers are located rather than a lack of competition.
- Related tickers: (NYSE:AFL) (NYSE:AIG) (NYSE:AET) (NYSE:CI) (NYSE:CNC) (NYSE:UNH) (NYSE:ANTM) (NYSE:MOH) (NYSE:HNT) (NYSE:HUM) (NYSE:WCG) (NASDAQ:MGLN)
Sat, Jan. 24, 4:48 PM
- The financial sector is off to a worse start to the year than even the energy names, with the XLF down 3.9% YTD vs. the XLE's 3.2% decline. The S&P 500 is roughly flat. The SPDR KBW Bank ETF (NYSEARCA:KBE) is off 7.5%, and the Regional Bank ETF (NYSEARCA:KRE) is lower by 6.9%.
- Q4 earnings results haven't been wonderful, but financial names had been savaged well before those reports started coming out. Instead there's a difficult regulatory regime that won't quit, and - for now - it's looking like "wait'll next year" for the rising interest rates that were supposed to drive profit margins higher. The 10-year/2-year spread - already pretty low at 150 basis points to start the year - has narrowed to 137 bps.
- A partial roll call of banks: Bank of America (NYSE:BAC) -12.1% YTD, Citigroup (NYSE:C) -10.1%, JPMorgan (NYSE:JPM) -9.4%, Morgan Stanley (NYSE:MS) -9.4%, Regions Financial (NYSE:RF) -14.7%, KeyCorp (NYSE:KEY) -4.5%, PNC Financial (NYSE:PNC) -5.4%, Bank of New York (NYSE:BK) -9.1%, Capital One (NYSE:COF) -6%, Discover (NYSE:DFS) -13.6%.
- Other spread-starved sector names: MetLife (NYSE:MET) -9.8%, AIG (NYSE:AIG) -8%, Prudential (NYSE:PRU) -10.8%, Schwab (NYSE:SCHW) -9.9%.
- Some of what's working in financials: Blackstone (NYSE:BX) +6.7%, E*Trade (NASDAQ:ETFC) +1.2%, WisdomTree (NASDAQ:WETF) +12.3%, Legg Mason +2.8%.
Wed, Jan. 21, 7:21 AM
- Ireland's Laya Healthcare has nearly 500K customers and employs 450, mostly in Cork.
- "Building on Laya Healthcare’s success serving customers in Ireland is an important step in expanding AIG’s Health and Consumer strategies," says global head of AIG's health business, Jay Sheehy.
- The deal is expected to close in H1. No terms were disclosed.
- Source: Press Release
Tue, Jan. 20, 8:57 AM
- "We are just very disciplined with the money of our shareholders and will do what's best for them: whether it is paying down debt, buying airplanes or buying back shares," says AerCap (NYSE:AER) CEO Aengus Kelly, responding to a question as to whether the company might buy back all or part of its stock owned by AIG.
- Earlier headlines making the rounds described Kelly's comments as suggesting a stronger consideration of a buyback.
- AerCap has maintained its priority is reducing its debt loan during the ILFC integration, a strategy Kelly says is ahead of schedule.
Tue, Jan. 20, 8:13 AM
- To review, AIG is the owner of nearly 100M shares of AerCap (NYSE:AER) following its sale of ILFC in May 2014. AerCap's stock price has declined from about the $45 area at the time of the sale to $38 at the close on Friday, and Reuters reports the company is mulling repurchasing shares from AIG.
- AIG +1.3% premarket
Mon, Jan. 12, 3:02 PM
- It's safe to say AIG (AIG -1.7%) has regained the confidence of the debt markets as it offers $2B of bonds today, including $800M in 40-year notes that could price just 190 basis points above Treasurys, reports Bloomberg.
- “The terms they are getting are pretty darn attractive,” says a fund manager. “They have taken steps that give investors comfort they aren’t content on being a zombie company and won’t make the same mistakes they made in the past.”
Thu, Jan. 8, 9:43 AM
- "We continue to view AIG (AIG) as the best positioned non-bank SIFI among the Big 3 (MET and PRU are the others) with regard to probability of returning the highest proportion of earnings both now and in the future as federal regulation unfolds," says Credit Suisse, downgrading AIG to Neutral from Outperform, and cutting the price target by $1 to $59.
- However, says the team, AIG is nearing its maximum sustainable payout ratio, while both MetLife and Prudential have room to go higher. By Credit Suisse's calculations, AIG's capital returns are near 100% of GAAP earnings vs. 35-45% for MET and PRU.
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