ourkid8 Posted June 19, 2013 Share Posted June 19, 2013 Oops, my mistake... 8 years not 6. Don't forget, this will also be combined with a share repurchase program. We still have 6 more years left in the warrants so plenty of time for dividend adjustments! :) Tks, S Here you go racemize Thanks! Looks like they peg the dividend right at the warrant threshold - I guess it will be good for price appreciation, but that's the highest level without any adjustments! somewhat painful... Warrants expire in 2021, so we have close to 8 years left. That's A LOT of time. Link to comment Share on other sites More sharing options...
gokou3 Posted June 19, 2013 Share Posted June 19, 2013 Here you go racemize Thanks dcollon. Re: ILFC: While AIG is in possession of a $422 million deposit, this should not be construed as a break-up fee under most circumstances. We expect that AIG would have to return the deposit if the deal is not consummated. Is this common practice? What's the point of requesting deposits if they need to be returned? Link to comment Share on other sites More sharing options...
finetrader Posted June 24, 2013 Share Posted June 24, 2013 Ben Benmosche: Higher interest rates will be a negative at some point, particularly for the annuities business, but "for the first 100 to 200 basis points, it's going to be a big positive not only for AIG" but most insurers, he said. Link to comment Share on other sites More sharing options...
ourkid8 Posted June 24, 2013 Share Posted June 24, 2013 Thanks as I am definitely looking to add to my AIG warrant position... :) Tks, S Ben Benmosche: Higher interest rates will be a negative at some point, particularly for the annuities business, but "for the first 100 to 200 basis points, it's going to be a big positive not only for AIG" but most insurers, he said. Link to comment Share on other sites More sharing options...
Uccmal Posted June 25, 2013 Share Posted June 25, 2013 Bought some more calls on the correction. Replenishing an old position. 42* 2015s. Link to comment Share on other sites More sharing options...
mrvlad0 Posted June 28, 2013 Share Posted June 28, 2013 ILFC Focused on Speedy Sale to China Group International Lease Finance Corp. (ILFC), the plane-leasing unit of American International Group Inc. (AIG), said it remains intent on completing its delayed sale to a Chinese group for about $4.2 billion. “We are doing everything we can to reach a speedy conclusion,” ILFC Chief Executive Officer Henri Courpron said today in an interview. “But complicated deals take time.” http://www.bloomberg.com/news/2013-06-27/ilfc-focused-on-speedy-sale-to-china-group-ceo-courpron-says.html Link to comment Share on other sites More sharing options...
fareastwarriors Posted July 9, 2013 Share Posted July 9, 2013 http://www.bloomberg.com/news/2013-07-09/regulators-vote-to-label-aig-ge-capital-systemically-important.html Regulators Vote to Label AIG, GE Capital Systemically Important Link to comment Share on other sites More sharing options...
ourkid8 Posted July 9, 2013 Share Posted July 9, 2013 Thanks for this. We all knew GE and AIG were systemically important organizations. Wasn't prudential also tagged as well? I am also very surprised how Berkshire Hathaway was not tagged either. S http://www.bloomberg.com/news/2013-07-09/regulators-vote-to-label-aig-ge-capital-systemically-important.html Regulators Vote to Label AIG, GE Capital Systemically Important Link to comment Share on other sites More sharing options...
krazeenyc Posted July 10, 2013 Share Posted July 10, 2013 http://www.reuters.com/article/2013/07/10/ilfc-loan-idUSL4N0FG3GD20130710?feedType=RSS&feedName=financialsSector&rpc=43 who knows what this means for the ILFC sale. Link to comment Share on other sites More sharing options...
PlanMaestro Posted July 11, 2013 Author Share Posted July 11, 2013 Top 10 U.S. Aircraft Insurers: SNL http://www.carriermanagement.com/news/2013/07/11/109523.htm Link to comment Share on other sites More sharing options...
berkshiremystery Posted July 29, 2013 Share Posted July 29, 2013 Judge Says Bernanke Should Testify in A.I.G. Case 2013-07-29 NYTimes.com http://dealbook.nytimes.com/2013/07/29/judge-says-bernanke-should-testify-in-a-i-g-case/ A federal judge said on Monday that Mr. Bernanke should have to give a deposition in a lawsuit being brought by the former chief executive of A.I.G., Maurice R. Greenberg, over the rescue of the giant insurer. Testimony from the Fed chairman would “unquestionably” be relevant to the case, Judge Thomas C. Wheeler of the United States Court of Federal Claims said. Link to comment Share on other sites More sharing options...
dcollon Posted July 29, 2013 Share Posted July 29, 2013 AIG to Shut Bank Accounts in Dodd-Frank Deposits Retreat http://www.bloomberg.com/news/2013-07-29/aig-to-return-deposits-shut-bank-accounts-in-dodd-frank-retreat.html Link to comment Share on other sites More sharing options...
mbharadwaj Posted August 1, 2013 Share Posted August 1, 2013 AIG earnings: $1.12 a share, $8.35 billion revenue vs. expectations of 85 cents EPS, $8.62 billion revenue and a dividend of $0.10 per share Link to comment Share on other sites More sharing options...
BargainValueHunter Posted August 1, 2013 Share Posted August 1, 2013 Benmosche live on CNBC...coming up. (Will be archived no doubt) :) Link to comment Share on other sites More sharing options...
nkp007 Posted August 1, 2013 Share Posted August 1, 2013 AIG earnings: $1.12 a share, $8.35 billion revenue vs. expectations of 85 cents EPS, $8.62 billion revenue and a dividend of $0.10 per share Also $1 billion buyback. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted August 1, 2013 Share Posted August 1, 2013 Benmosche To Bartiromo: Hedge fund ownership in AIG has dropped ~50% in the last few months. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 1, 2013 Share Posted August 1, 2013 AIG stock is surging in after-hours trading after the company said it would resume paying a dividend and would resume buying back stock. The insurer announced a 10-cent-per-share dividend and a $1 billion share buyback. For the second quarter, AIG reported earnings of $1.12 a share on $8.35 billion in revenue. While earnings beat forecasts for 85 cents per share, revenue missed estimates for $8.62 billion. In the year-earlier quarter, AIG earned 96 cents per share on revenue of $8.82 billion. Link to comment Share on other sites More sharing options...
BargainValueHunter Posted August 1, 2013 Share Posted August 1, 2013 Benmosche To Bartiromo: No more shedding businesses..."we're all about adding [businesses]" Link to comment Share on other sites More sharing options...
BargainValueHunter Posted August 1, 2013 Share Posted August 1, 2013 Benmosche To Bartiromo: Mid-teens EPS growth is the goal while growing book value. Steady ROE improvement is also a priority. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 1, 2013 Share Posted August 1, 2013 http://www.bloomberg.com/news/2013-08-01/aig-announces-first-dividend-since-2008-as-profit-climbs-17-.html ... .Book Value Book value, a measure of assets minus liabilities, fell to $66.02 per share at the end of the second quarter from $67.41 three months earlier. Rising interest rates pressured the value of AIG’s bond portfolio, and contributed to book-value drops at MetLife Inc. and Travelers Cos. Benmosche has reduced debt at AIG to secure the company’s credit grade. He’s said the company needed to cut leverage before returning capital to shareholders. AIG is a “stronger, simpler, more focused company,” he said in the statement. ... AIG reached a deal in May with People’s Insurance Company Group of China Ltd. for a joint venture to sell life insurance in China. Last year, AIG took a $500 million stake in PICC’s property-casualty unit. AIG last month named Jim Dwane to run the property-casualty business in Latin America and the Caribbean, as P&C head Peter Hancock filled posts vacated by defections to Berkshire Hathaway Inc. (BRK/A) The insurer also shifted managers to bolster growth in Brazil. Link to comment Share on other sites More sharing options...
mrvlad0 Posted August 1, 2013 Share Posted August 1, 2013 Benmosche on CNBC (video): http://video.cnbc.com/gallery/?play=1&video=3000187522 Link to comment Share on other sites More sharing options...
Mephistopheles Posted August 2, 2013 Share Posted August 2, 2013 Can Eric or anyone explain why the warrants have been underperforming the stock for some time? The cost of leverage now is only 6.2%. Of course, with the new dividend, that # is higher, but it's still pretty cheap, especially compared to the BAC class A warrants which are at 9.2%. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 3, 2013 Share Posted August 3, 2013 http://www.bloomberg.com/video/aig-to-move-headquarters-to-water-street-ceo-says-3871JzLkSpSrDM6NrP2PSQ.html Bloomberg interview: Robert Benmosche, chief executive officer of American International Group Inc., Link to comment Share on other sites More sharing options...
ERICOPOLY Posted August 3, 2013 Share Posted August 3, 2013 Can Eric or anyone explain why the warrants have been underperforming the stock for some time? The cost of leverage now is only 6.2%. Of course, with the new dividend, that # is higher, but it's still pretty cheap, especially compared to the BAC class A warrants which are at 9.2%. The cost of leverage in BAC warrants will keep falling as well, as the stock rises. These are the risks of buying 6 or 8 years of leverage prepaid when you expect a large rise in the stock. You know about the effects of skewness on option pricing. So... if you expect the stock to shoot up then you need to protect yourself by shortening the duration of your option contracts. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 6, 2013 Share Posted August 6, 2013 http://www.businessweek.com/articles/2013-08-02/the-sale-of-aigs-aircraft-leasing-unit-remains-grounded#r=nav-fs The Sale of AIG's Aircraft-Leasing Unit Remains Grounded Link to comment Share on other sites More sharing options...
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