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American International Group Inc (AIG)

  • Jul. 23, 2014, 3:16 PM
    • The14 year-old ATR-72 plane flying to a Taiwanese island crashed today, killing dozens. Its value is pegged at about $13.2M.
    • According to Aon Plc - a broker which tracks aviation market coverage - AIG is the lead insurer.
    • Claims for airline insurers are on the rise of late after several years with a lack of crashes, and today's tragedy follows the downing of the Malaysian Air jet over Ukraine.
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  • Jul. 21, 2014, 1:57 AM
    • AIG (NYSE:AIG) has recouped more than $2B in settlements with banks over the shoddy mortgage bonds that almost led to the insurer's collapse during the financial crisis.
    • Most of the settlements were completed though private deals with banks such as Morgan Stanley, JPMorgan and BofA.
    • The out-of-court settlements means the AIG is unlikely to pursue further legal action against big banks.
  • Jul. 16, 2014, 8:22 AM
    • An existing AerCap (NYSE:AER) Airbus A340-300 customer, Air Mauritius signs a letter of intent to lease two Airbus A350-900 aircraft. AerCap President Philip Scruggs: "The introduction of new A350-900s in 2017 will make Air Mauritius even more competitive on critical routes to Europe and Asia and will position the airline as a leader in African aviation."
    • Press release
    • A major AerCap owner with nearly 100M shares is AIG.
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  • Jul. 16, 2014, 7:25 AM
    • Net income of $2.3B or $0.19 per share includes pretax litigation expense of $4B, or $0.22 per share after tax.
    • Net interest income of $10.226B falls 5% Y/Y, with NIM off 2 basis points to 2.26%.
    • Noninterest income of  $11.734B falls 4%. Consumer and Business banking net income of $1.788B rises 29% from a year ago, with mobile banking customers of 15.5M up 17%. Consumer Real Estate Services net loss of $2.8B compares to net loss of $930M a year ago, with 1st-mortgage originations off 59%. Global Wealth and Investment Management net income of $724M falls from $759M. Global Banking net income of $1.353B vs. $1.3B a year ago. Global Markets net income of $1.1B gains 14%, with FICC revenue of $2.4B up 5% Y/Y.
    • Noninterest expense of $18.5B rises from $16B thanks to litigation expenses. Excluding that, noninterest expense of $14.6B declined 6% as the bank continues to cut staff, particularly in LAS (legacy mortgage servicing).
    • The bank settles with AIG over all MBS issues for $650M, and AIG agrees to pull its objection to BAC's $8.5B private-label securities settlement (the Article 77 proceeding).
    • Tangible book value per share of $14.24 up from $13.81 at end of Q1.
    • Shares flat premarket
    • Previously: Bank of America beats by $0.12, beats on revenue
  • Jul. 1, 2014, 4:18 PM
  • Jun. 26, 2014, 10:10 AM
    • The original offer to buy back bonds was for $1.5B, but AIG has lifted the amount to $2.5B after it was oversubscribed. The junior debt tender is for $1.8B, and the senior tender is for $700M.
    • Source: Press Release
  • Jun. 25, 2014, 7:25 AM
    • Resuming coverage of AerCap (AER) with a Buy rating and $54 price target (up from $27.40) following the closing of the ILFC purchase from AIG, Citigroup says it expects the deal to be "substantially value accretive."
    • Yesterday, UBS initiated coverage with a Buy rating and $55 price target, also noting the move to Ireland which should cut the company's tax bill.
    • AIG is the owner of nearly 100M share of AerCap.
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  • Jun. 23, 2014, 2:53 PM
    • AIG's decades-long run of well-known CEOs up until now are responsible for building, nearly destroying, and then reviving the company's franchise, writes SNL's Adam Cancryn, but this should not be the case for incoming chief Peter Hancock.
    • "At this point in time, I don't think the story for AIG, at least on the P&C side, is one of massive growth," says BMO's Charles Sebaski. "What I think AIG needs to do, given its size, is not be pushing for growth but continuing to restructure and reallocate the portfolio."
    • Hancock - a lifelong banking man hired from KeyCorp in 2010 - seems to fit the bill then. Since coming to the insurer, he's led the effort to turn around P&C using technology and data analytics, and appointed a chief science officer in 2012 with an eye towards cutting costs, reducing losses, and improving prices. The effort seems to be working, but early on at least, the heavy upfront costs of the investment are keeping the improvement from flowing through to the bottom line..
    • Also complicating things: Hancock beat out Life and Retirement CE Jay Wintrob for the top slot, and while Wintrob's unit is smaller than P&C, its equally profitable, making him a target hire for other companies.
  • Jun. 19, 2014, 10:27 AM
    • The new agreement for 5 years and $4B, replaces the previous 4-year, $4B deal. Additionally, the entire $4B is now available to AIG both as a credit line and for the issuance of letters of credit. The previous agreement allowed for just a $2B letter of credit sub-limit.
    • Source: Press Release
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  • Jun. 18, 2014, 10:35 AM
    • Seeking to gain business from the growing trend of middle-market companies expanding overseas, AIG launches its Property Performance Series which will initially provide commercial property solutions for businesses in Canada, Australian, Europe, South Africa, and the U.S., with expansion to other countries later this year.
    • Source: Press release
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  • Jun. 13, 2014, 3:32 PM
    • AIG today is half its pre-crisis size in terms of assets and revenues, but its 2013 profit was nearly two-thirds its 2006 income of $14B. and higher than $6.2B in 2007.
    • If Bob Benmosche had a genius, it was his ability to unload assets at decent prices over the past several years in what not only was a buyer's market, but often where there weren't any buyers at all.
    • If Benmosche had a weak spot, it was his blunt talk (sometimes known as telling the truth), including his claim that public outrage over bonuses paid to some AIG employees was based on "ignorance." As politically incorrect as that statement may have been, its purpose seemed clear: To let Benmosche take the heat for his troops.
    • "Often times, with firms that survive trouble, they end up with the CEO the firm needs, not the one they want,” he said.
  • Jun. 12, 2014, 8:59 AM
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  • Jun. 11, 2014, 12:40 PM
    • Seeking to find better-yielding investments, many insurers, pension funds and other institutional types have begun to venture into business development company territory with loans to so-called middle-market firms.
    • AIG joins the move, committing $1.5B to Varagon Capital Partners, a JV with P-E firm Oak Hill Capital. Varagon offerings will include first-lien and mezzanine financing, and focus on borrowers with $10M-$75M of EBITDA. Loans will be for up to $350M, and AIG will hold $20M-$100M in a typical deal, syndicating the rest to other investors.
  • Jun. 11, 2014, 10:45 AM
    • The appointment of Peter Hancock to lead AIG (AIG -1%) is "well-deserved and bodes well for the strategic direction of the firm," say Bernstein's Josh Stirling and Grant D'Avino, though the two do admit they're sad to see Bob Benmosche exiting.
    • "Peter is the architect of the ambitious transformation in P&C, and his vision to leverage science and analytics on a global scale is central to our thesis that AIG will re-emerge as a great company with an unrivaled global franchise in insurance."
    • "Simply put, we don’t think the board would have promoted Peter if the turnaround wasn’t on track," they conclude, and with CEO succession no longer an issue, one of the major bear cases on AIG has been removed.
    • Previously: Peter Hancock to replace Bob Benmosche at AIG
  • Jun. 10, 2014, 4:13 PM
    • Currently the CEO of AIG Property Casualty, Peter Hancock will replace Bob Benmosche as AIG CEO, effective September 1. Hancock will also join the AIG board and Benmosche is expected to resign from his role as a director.
    • The succession is a little earlier than expected, but Hancock was thought to be the leading candidate to take over the CEO role.
    • Source: Press Release
  • Jun. 6, 2014, 9:48 AM
    • AIG (AIG +0.9%) takes out a multi-year high after last night's $2B boost to its share repurchase program. The current price of $55.42 hasn't been seen since the early days of 2011.
    • Barclays chimes in after the news, lifting its price target on the Overweight-rated stock to $64 from $56.
    • Previously: AIG adds $2B to buyback
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Company Description
American International Group Inc is a holding company. The Company, through its subsidiaries, provides insurance and related services in the United States and abroad.