Yesterday, 11:52 AM
- According to a filing from AerCap (AER -1.4%), AIG will sell its remaining 97.6M shares in the company (a 46% stake) at a maximum price of $43.74 each.
- AIG, of course, obtained the stake through its sale of ILFC to AerCap last year.
- For AerCap, the sale will remove a sizable overhang on the stock. For AIG, the $4B-plus raised will be nice firepower for buybacks.
- SEC Form F-3ASR
Mon, Mar. 30, 3:28 PM
- After five years in the role, AIG (AIG +1.3%) Chairman Steve Miller intends to step down in July, report Joann Lublin and Leslie Scism. No replacement has been settled on, but the next chairman is likely to come from the current board, according to the duo's source.
- Company guidelines say a non-executive chairman (of which Miller is one) should serve no more than fie years, and - with the company no longer in crisis mode - there's no compelling reason to extend the restructuring specialist's term, says the source. Miller will remain on the board.
- Miller joined the AIG board in 2009 and became chairman in 2010.
Mon, Mar. 30, 7:42 AM
- AIG is offering about 254M of China's largest non-life insurer for HK$15-HK$15.48 each, reports Bloomberg, a 2-5.1% discount to the stock's closing price on Monday. AIG would raise $507M at the top end of that range.
- AIG is among a number of foreign investors ringing the register on some of their Chinese insurance holdings after a big bull run in the sector over the past year.
Sun, Mar. 22, 9:53 AM
- AIG (NYSE:AIG) shareholders won approval on Friday for a $970.5M settlement of claims they were misled about its subprime mortgage exposure.
- AIG says it is pleased with the ruling.
- Investors accused AIG of failing to disclose the risks it took on through its credit default swaps and securities lending programs, which led investors to buy stock and debt they otherwise would not have bought.
- The settlement covers investors who bought AIG securities between March 16, 2006, and Sept. 16, 2008, when the company received its first bailout. The court overruled an objection by two people who bought shares before that period who said they should be included in the suit.
Mon, Mar. 16, 8:46 AM
- NSM Insurance Group is a major player in insurance programs administration, and has been managing certain insurance programs for AIG for more than 15 years. It will continue to do so, along with those of third parties.
- The purchase boosts AIG's strategic goal of diversifying its product offers and provides its customers greater access to unique insurance programs, says the company.
- Terms were not disclosed and the deal should close within the next 30 days.
- Source: Press Release
Fri, Mar. 6, 9:46 AM
- A turnaround from the action earlier this year - financials (XLF +0.9%) are marching higher in early action as the averages slip, as nervous investors buy back in following the stress test results. Also helping are surging interest rates following the strong jobs number.
- Looking at a pretty broad screen of bank names, just two - Goldman Sachs and Zions, both of which barely passed the stress test - are lower. Among the others: Bank of America (BAC +3.7%), JPMorgan (JPM +1.1%), U.S. Bancorp (USB +1.6%), Regions FInancial (RF +2.3%), KeyCorp (KEY +2.7%), PNC Financial (PNC +2.3%), BB&T (BBT +2.4%), Fifth Third (FITB +2.2%), Comerica (CMA +3.8%), BNY Mellon (BK +2.9%).
- Among those starved for higher rates: MetLife (MET +3%), Prudential (PRU +3.3%), Lincoln National (LNC +4.1%), AIG (AIG +1.4%), Hartford (HIG +2%), E*Trade (ETFC +3.9%), Schwab (SCHW +4.4%), Ameritrade (AMTD +4.3%).
- Previously: Futures slip after jobs number as yields and dollar soar (March 6)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, KBWC, FINZ, KRS
Fri, Feb. 27, 2:43 PM| 11 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)
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