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American International Group, Inc. (AIG)

NYSE - Nasdaq Real Time Price. Currency in USD
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52.96-0.27 (-0.51%)
At close: 4:00PM EDT
52.96 0.00 (0.00%)
After hours: 05:12PM EDT
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  • R
    ROLAND
    American International Group, Inc. (NYSE: AIG) is one of the stocks Mario Gabelli is dumping.
  • J
    John
    For those who didn't listen to the 9/9 fireside chat:
    - Didn't say anything about suspending buyback due to catastrophes, still 2 billion by year end and 6 billion total. Wells Fargo analyst suggested ins. companies may do so. Said liquidity and capital still very strong. He did however, make it sound like the numbers could be fairly sizable for cats, specifically called out German flooding and said not many people are talking about that but instead focusing on IDA.
    - My interpretation regarding his comments on reinsurance were we can drop the amount we cede if we need/want to. According to their 2020 Annual Report they ceded 11 billion of premium in 2020 and got back 8 billion in reinsurance payments. Perhaps I'm being simplistic but that looks like a 3 billion L to me so my vote is you drop the amount.
    - Sounded quite confident about the future.
  • J
    John
    Appear to be adding tremendous liquidity which should speed debt reduction(assuming debt is callable) and more importantly buybacks. Investment book in L & R was sold in July for 6.8 billion minimum(that was value of investments). Affordable housing will be sold in fourth quarter with 4 billion cash being sent to the parent. 2.2 billion dollars from Blackstone L & R 9.9% deal and then another 2 billion potential from the L & R IPO. Was hard to decipher but it appeared they were intimating on the call that the L & R IPO may go above another 9.9% which would mean more than 2 billion. That's almost 15 BILLION of liquidity excluding earnings. I've cited several times about how they are overcapitalized at both P&C and L&R so it makes sense they would sell investments for cash and then put that cash to work in some fashion.
    The value of P&C is now roughly 21 billion if you assume the Blackstone valuation of L & R at 22 billion is accurate. Where will they put the 15 BILLION to work? Could they do it all, except the 2 billion buyback in 21? That means 13 BILLION and that excludes earnings for the next two quarters with last quarter's earnings at 1.3 BILLION.
  • b
    baechler
    Thanks to (http://trademarketview.tech) I have saved hours of research for stock picks. Their daily watchlists help me make the most of my trades each day!
  • J
    John
    Net written premium is almost $650 million above earned premium for the June quarter. This quarter's earned premium was fairly close to last quarter's net written premium so hopefully that means next quarter's earned premium is up $650 million from this quarter where earnings were $1.3 billion or so. They shouldn't have to cash pay taxes for a little while yet AND they are BUYING BACK 2 BILLION OF STOCK prior to year end and then another 4 billion minimum next year.
    You could be looking at $9.00 in earnings next year if the company stayed combined. I think Yahoo is at $5 or so. How we are only up $1.00 after hours is mind boggling.
  • k
    kreider
    Learn how to keep your money safe from new tax increases by getting a copy of our FREE retirement guide now! (http://Irswarning.com)
  • R
    Riley
    What???
    47.31 -7.30 (-13.37%)
    After hours: 06:09PM EDT
  • J
    James
    finally a great quarter. but will anyone see or hear. this could be a 70 or 80 dollar stock in a year or 2 if they perform like this. blackstone will help and the stock repurchase will definitely help. did you notice the last quarters buyback and the fact that share count actually went down. good luck to all if anyone is actually out there.
  • B
    Billy
    Continuing to transform themsleves into a PC insurer with a focus on improved pricing. trading at a big discount to book relative to other PC insurers. This looks liek a great LT buy with a good dividend yield in the interim.
  • j
    josh
    8/9/21
    Piper Sandler Raises Price American International Group, Inc. (AIG) $57.00 -> $59.00
  • J
    James
    they keep trying to knock down this stock down but with the company buying 400000 shares a day and the upgrades 60 is in site.
  • j
    josh
    American International Group Inc. (AIG) reported second-quarter net income of $99 million, after reporting a loss in the same period a year earlier.

    AIG said it had profit of 11 cents per share. Earnings, adjusted for non-recurring costs, were $1.52 per share.

    The results surpassed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.19 per share.

    The insurer posted revenue of $10.68 billion in the period. Its adjusted revenue was $11.99 billion.
  • J
    John
    Current market cap is 40B. Based on deal with Hedge Fund for L & R it's worth 22B in their eyes which means the P&C portion of the company is worth 18 BILLION. Chubb's market cap today is roughly 75 BILLION. AIG's fearless leaders have said they may use IPO proceeds to buy stock of the P&C company. Those proceeds should be 4.4 BILLION and they are significantly overcapitalized so they should be able to buy back more than just the 4.4 billion. That puts P&C at a market cap of 13.6 BILLION and again Chubb is worth 75 BILLION. Granted, AIG isn't Chubb, but it ain't that far from it.
    Assuming P&C gets to under 90 for its ratio by 2022 the profit for P&C could be roughly $4 BILLION and they shouldn't have to case pay tax for a while.
    The above is a long way of saying the current valuation of this company is NUTS but we've been saying that for a while, haven't we.
  • J
    James
    just keep selling your shares back to the company after the funds the supply is going to get miniscule. we are going into the sixties within 2 months.
  • j
    josh
    AIG - QTRLY EARNINGS PER SHARE $0.11; QTRLY ADJUSTED AFTER-TAX EARNINGS PER SHARE $1.52

    QTRLY TOTAL GENERAL INSURANCE NET PREMIUMS WRITTEN $6.86 BILLION , UP 24%

    QTRLY GI ACCIDENT YEAR COMBINED RATIO, AS ADJUSTED, EXCLUDING CATASTROPHE LOSSES AND RELATED REINSTATEMENT PREMIUMS, WAS 91.1 VERSUS 94.9

    AS OF JUNE 30, 2021 BOOK VALUE PER COMMON SHARE WAS $76.73 VERSUS $ 71.68

    QTRLY TOTAL GENERAL INSURANCE UNDERWRITING INCOME OF $463 MILLION VERSUS LOSS OF $343 MILLION

    AS OF JUNE 30, 2021 ADJUSTED BOOK VALUE PER COMMON SHARE WAS $ 60.07 VERSUS $ 55.90

    AIG BOARD INCREASED SHARE REPURCHASE AUTHORIZATION TO $6.0 BILLION, INCLUDING ABOUT $0.9 BILLION THAT REMAINED UNDER PRIOR AUTHORIZATION

    BOARD DECLARED QUARTERLY CASH DIVIDEND OF $0.32 PER SHARE ON AIG COMMON STOCK

    IN H2 2021, EXPECT TO REPURCHASE AT LEAST $2 BILLION IN COMMON STOCK AND REDUCE DEBT OUTSTANDING BY $2.5 BILLION
  • j
    josh
    8/17/21
    Wolfe Research Initiated American International Group, Inc. (AIG) $63.00 Outperform
  • G
    Greg
    Great news!
  • C
    Clay
    Blackstone is right, insurance business is solid. AIG pays a nice, but never increased dividend. I would like to see it raised each year. Just added some PRU to diversity my insurance holding and take advantage of a high dividend yield. GLTA!
  • J
    J.C.
    There are several insurance companies with price to book ratio of well under 1, like AIG. Ridiculous how cheap they are. Industry is ripe for consolidation, being acquired by companies in industries with much higher PE multiples who want to diversify, as well as finding creative ways to manage their assets to generate higher returns like AIG just did. Kudos to AIG for FINALLY thinking outside of the box and taking strategic actions to try and increase shareholder value instead of destroy it.
  • J
    JPB
    Any ideas why this has been dropping so consistently? Down almost 20% from recent peak. Possibly due to 10 year rate taking a dive from a high near 1.75. Also doesn't look like a high volume selloff.