MrB Posted December 16, 2013 Share Posted December 16, 2013 In essence a debt for equity swap. I'll gladly settle for it being wedged off the balance sheet for which I always thought is pretty much an unsellable asset. Sort of. In addition to the liquidity benefits from this transaction (once the lock-up period expires) and the moving of debt off-balance sheet, we see AIG now having a stake in a different collection of air leaseco assets and liabilities. A better one, IMO. The portfolio of assets will now be newer, and as the second largest pure play air lease co in the world, there will likely be some efficiencies of scale to benefit from. It's similar to what's happening in other leaseco industries (equipment rental and car rental). See http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTI4MTU3fENoaWxkSUQ9MjE1MzE5fFR5cGU9MQ==&t=1 I've always liked the air lease business. And it made a lot of sense for AIG to own ILFC when AIG was a AAA credit. But now it makes all the sense in the world to divest those ops in a way that allows them to keep economic exposure to that biz without having to focus on the management of the biz. I'd love to see AIG do a similar big deal with their life insurance ops. I agree in general and re your comment on AAA specifically. That is why I always thought it cannot be sold, because the only rational buyer is one with a AAA balance sheet and how many of those are left and would be interested in the leasing business? 0 by my count. Hazy's also the one that more or less created that industry and he was running around out there fast becoming ILFCs main competitor. ILFC and Hazy at some point sued each other, so I saw him as a not only an extremely good competitor, but one with an axe to grind. Today Hazy is close to being back in the driver seat of most likely the main player in this industry again. Kudos to Ben....once again. He clearly exceeded my expectations. Link to comment Share on other sites More sharing options...
fareastwarriors Posted December 16, 2013 Share Posted December 16, 2013 Benmosche on CNBC. http://video.cnbc.com/gallery/?play=1&video=3000225236 http://video.cnbc.com/gallery/?play=1&video=3000228319 Link to comment Share on other sites More sharing options...
randomep Posted December 17, 2013 Share Posted December 17, 2013 Well they just unloaded ILFC. I also own a stock KCLI, which is like a smallcap version of AIG. Any thoughts? My thoughts are below: http://bovinebear.blogspot.com/2013/12/why-i-own-insurance-stocks.html Link to comment Share on other sites More sharing options...
Liberty Posted December 17, 2013 Share Posted December 17, 2013 AER shares are up 65% in the past 5 days. Nice little bonus for AIG, but its the AER shareholders that are making out like bandits here. Link to comment Share on other sites More sharing options...
mbharadwaj Posted January 4, 2014 Share Posted January 4, 2014 http://www.fool.com/investing/general/2014/01/03/aig-makes-another-smart-exit.aspx They sold another non-core business. Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 16, 2014 Share Posted January 16, 2014 Robert Benmosche on BB http://www.bloomberg.com/video/aig-ceo-benmosche-plans-to-stay-through-2014-Hbp5BczjRkeNvewfxFVq~w.html Link to comment Share on other sites More sharing options...
phil_Buffett Posted January 16, 2014 Share Posted January 16, 2014 hopefully they will buy back more Shares this year Link to comment Share on other sites More sharing options...
fareastwarriors Posted January 24, 2014 Share Posted January 24, 2014 AIG on Offense After Restoring Disrespected Name, Chairman Says http://www.bloomberg.com/news/2014-01-24/aig-on-offense-after-restoring-disrespected-name-chairman-says.html video http://www.bloomberg.com/video/miller-cohn-undertainty-hinders-hiring-spending-jHosMTFDTM~gxw7lpJe7mQ.html Link to comment Share on other sites More sharing options...
plato1976 Posted January 25, 2014 Share Posted January 25, 2014 Good opp for them to buy back more under 50 Hope they can execute hopefully they will buy back more Shares this year Link to comment Share on other sites More sharing options...
ourkid8 Posted January 25, 2014 Share Posted January 25, 2014 Their run rate on the repurchase program is about $200 million a quarter and the authorization is extremely small at $1B. I was really hoping that they would have increased it with the sale of ILFC as they have an extra $3B in cash but its a shame that was not the case. Tks, S Good opp for them to buy back more under 50 Hope they can execute hopefully they will buy back more Shares this year Link to comment Share on other sites More sharing options...
phil_Buffett Posted January 25, 2014 Share Posted January 25, 2014 Their run rate on the repurchase program is about $200 million a quarter and the authorization is extremely small at $1B. I was really hoping that they would have increased it with the sale of ILFC as they have an extra $3B in cash but its a shame that was not the case. Tks, S Good opp for them to buy back more under 50 Hope they can execute hopefully they will buy back more Shares this year indeed very sad. hopefully they buy back soon more Shares. and a lot of Shares. Link to comment Share on other sites More sharing options...
mankap Posted January 26, 2014 Share Posted January 26, 2014 I think with ILFC sale, AIG will get approval for bigger buyback. It surprised me that Ben replies to every E mail from employees. Link to comment Share on other sites More sharing options...
racemize Posted January 28, 2014 Share Posted January 28, 2014 On that note: http://www.bloomberg.com/news/2014-01-28/aig-jumps-as-bofa-sees-10-billion-of-share-buybacks.html?cmpid=yhoo Link to comment Share on other sites More sharing options...
phil_Buffett Posted January 29, 2014 Share Posted January 29, 2014 On that note: http://www.bloomberg.com/news/2014-01-28/aig-jumps-as-bofa-sees-10-billion-of-share-buybacks.html?cmpid=yhoo sounds good. hopefully they do it. Link to comment Share on other sites More sharing options...
phil_Buffett Posted February 13, 2014 Share Posted February 13, 2014 http://www.aig.com/Chartis/internet/US/en/AIG%20PR%20-%20Q4%202013%20-%202%2013%2014_tcm3171-578021.pdf dividend increase to 0,125$ per quarter and 1billion more to buyback Link to comment Share on other sites More sharing options...
Liberty Posted February 14, 2014 Share Posted February 14, 2014 Benmosche on bloomberg: http://bloom.bg/LYuCPh (priceless look in his eyes when Tim Armstrong is mentioned) Link to comment Share on other sites More sharing options...
finetrader Posted February 14, 2014 Share Posted February 14, 2014 Pretty good result! add in the DTA converted to cash and cash EPS suddenly look like this stock could easily be worth 65$/sh or 100B$ market cap Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 14, 2014 Share Posted February 14, 2014 Benmosche on CNBC http://video.cnbc.com/gallery/?video=3000246067 http://video.cnbc.com/gallery/?video=3000246023 Link to comment Share on other sites More sharing options...
ourkid8 Posted February 14, 2014 Share Posted February 14, 2014 Exactly... I continue to add to my options position. It's a shame they only added $1B to their share repurchase program especially with this large of a discount. Tks, S Pretty good result! add in the DTA converted to cash and cash EPS suddenly look like this stock could easily be worth 65$/sh or 100B$ market cap Link to comment Share on other sites More sharing options...
fareastwarriors Posted February 14, 2014 Share Posted February 14, 2014 AIG Takes $832 Million Charge on Death Bets as Hedge Funds Gain http://www.bloomberg.com/news/2014-02-14/aig-takes-832-million-charge-on-death-bets-as-hedge-funds-gain.html Link to comment Share on other sites More sharing options...
Kiltacular Posted February 14, 2014 Share Posted February 14, 2014 Exactly... I continue to add to my options position. It's a shame they only added $1B to their share repurchase program especially with this large of a discount. Tks, S Anything jump out at anyone to justify negative response by the market (aside from P&C underwriting and buyback)? Does this thing still deserve to be 20-25% below book? Link to comment Share on other sites More sharing options...
wisdom Posted February 14, 2014 Share Posted February 14, 2014 Yes - because I want them to use up their $1.4 B in buybacks before the stock price moves up. It would be nice to compete the buyback at 70% of BV. Link to comment Share on other sites More sharing options...
ourkid8 Posted February 14, 2014 Share Posted February 14, 2014 Actually, AIG is currently 41% below book value, this is rediculous!!! (68.62/48.65) Once the ILFC deal closes, we should see another bump to the dividend / share repurchase program. AIG is overly capitalized... Tks, S Exactly... I continue to add to my options position. It's a shame they only added $1B to their share repurchase program especially with this large of a discount. Tks, S Anything jump out at anyone to justify negative response by the market (aside from P&C underwriting and buyback)? Does this thing still deserve to be 20-25% below book? Link to comment Share on other sites More sharing options...
cubsfan Posted February 14, 2014 Share Posted February 14, 2014 Actually, AIG is currently 41% below book value, this is rediculous!!! (68.62/48.65) Once the ILFC deal closes, we should see another bump to the dividend / share repurchase program. AIG is overly capitalized... Tks, S Exactly... I continue to add to my options position. It's a shame they only added $1B to their share repurchase program especially with this large of a discount. Tks, S Anything jump out at anyone to justify negative response by the market (aside from P&C underwriting and buyback)? Does this thing still deserve to be 20-25% below book? I get 29% below BV. BV = 68.50 - current 48.65 = roughly $20 $20/68.50 = 29% below book Link to comment Share on other sites More sharing options...
Sullivcd Posted February 14, 2014 Share Posted February 14, 2014 It would need to rise 41% to reach book value. Link to comment Share on other sites More sharing options...
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