Today, 2:30 PM
- Lawyers from AIG and the government will each have two hours in a federal court in D.C. tomorrow to make their final case before Judge Thomas Wheeler.
- When former AIG CEO Hank Greenberg in 2011 brought the case against the government over its seizure of the company during the financial crisis, few gave him a chance of victory, but it doesn't seem so far-fetched now, writes Leslie Scism in the WSJ.
- Without tipping his hand, the judge laid out five questions for both sides to address. Maybe most interesting among them concerns the government's contention that the AIG board consented to the bailout. "Would voluntary consent constitute a valid defense," asks the judge. Greenberg's lawyer David Boies maintains voluntary consent is irrelevant if the court finds taking the equity stake wasn't legal to begin with.
- The decision in the case may not have a whole lot to do with the current valuation of AIG, but it will surely have ramifications for the next financial crisis.
Thu, Apr. 16, 9:53 AM
- The former CEO of Northwest Airlines, Steenland will become chairman effective July 1. He's replacing Steve Miller, who will remain a director, but is stepping away from the chairman's role thanks to company guidelines that no one should be in that position for more than five years.
- Both Steenland and Miller joined the AIG board in 2010.
- Source: Press Release
Wed, Apr. 15, 4:00 PM
- AIG (AIG +1.4%) first invested in Kroll 25 years ago, and tomorrow will announce an investment in K2 Intelligence, the investigations firm founded by Jules Kroll and son Jeremy five years ago, writes Michael de la Merced.
- Terms were not disclosed.
- While corporate investigations in the past have focused on due diligence or preventing espionage, today its about cybercrime.
- “One of the biggest shifts that has taken place is from a world where guns, guards and dogs surrounded the perimeter,” says Jeremy Kroll. “Today, these walls are permeable. Companies are working in a borderless world.”
- K2 was formed after the Krolls sold their old company to Marsh & McLennan for $1.9B in 2004. The new company has grown to 300 employees in offices worldwide.
- “The cyberinsurance market is very undeveloped, and some of our customers have struggled to get significant capacity,” says AIG's head of commercial insurance John Doyle. “This will help them manage those risks in a better way.”
- AIG has quietly been on a big run since a rough start to the year, up 20% since the end of January, and now ahead 4% YTD.
Thu, Apr. 9, 4:33 PM
- Hoping to put his stamp on the AIG by modernizing the insurer, CEO Peter Hancock brings on Michael Brady as chief technology officer. Brady most recently was head of infrastructure at Kaiser Permanente.
- “Mike’s first priority will be to focus on immediate improvements to our performance, making sure that our employees’ work experience is as productive and free of technological obstacles as possible,” says CIO Phil Fasano, who also used to work at Kaiser before Hancock brought him to AIG.
Wed, Apr. 8, 9:53 AM
- The unmanned aerial vehicles will be used to conduct inspections for risk assessment, risk management, loss control, and surety performance for U.S. customers.
- The approval also permits AIG to explore new ways to employ drones.
- The company already has a drone program up and running in New Zealand.
- Source: Press Release
Tue, Mar. 31, 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
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