AIG - American International Group

[ourkid8]

600% return divided by 24 years is 25%

 

I came up with 7.8% compounded. but I am no 12c wizard....

[Hielko]

600% return divided by 24 years is 25%

 

I came up with 7.8% compounded. but I am no 12c wizard....

You might want to check how to calculate returns. It's a 7.8% compounded annual return: (7.6/1.26)^(1/24)=1.078

 

[Grenville]

600% return divided by 24 years is 25%

 

I came up with 7.8% compounded. but I am no 12c wizard....

 

compounded return is calculated: (7.6/1.26)^(1/24) - 1

 

If it was 25%, then it would double every ~3yr or 72/25, which would mean 2^8

[ourkid8]

Lol... My bad, thanks!

[Guest wellmont]

Lol... My bad, thanks!

 

roughly right?  ;D

[ourkid8]

Very long day at work... Lol

 

Lol... My bad, thanks!

 

roughly right?  ;D

[fareastwarriors]

 

 

Berkshire Targets Airline Hassles in New Challenge to AIG

 

http://www.bloomberg.com/news/2014-05-19/berkshire-targets-airline-hassles-in-new-challenge-to-aig.html

[mrvlad0]

Goldman Sachs Sees Upside For AIG

$63/share price target

 

http://on.barrons.com/1jXnHzg

[peter1234]

Thanks mrvlad0.

 

FYI, GS had downgraded AIG 12 months ago...

 

Then (5/13), price: $46

Limited upside to $46, 12-month price target; downgrade to Neutral

 

Now (5/14), price: $54

We raise our rating on shares of AIG to Buy and set a new 12-month $63 price target as we believe investors should move their focus from capital deployment to capital generation. We believe AIG will generate [systematically important financial institution]-high capital and is best positioned among SIFI candidates to deploy capital accretively into its core businesses if large-scale buybacks are not a near-term option. Our positive stance on AIG does not represent a more favorable view of regulation than we had previously held, but instead is based on our view that AIG’s “second best” deployment option is underappreciated by investors

 

;)

[fareastwarriors]

AIG Warrants Jump to Highest Since First Month of Trading

 

http://www.bloomberg.com/news/2014-05-27/aig-warrants-jump-to-highest-since-first-month-of-trading.html

[mrvlad0]

Board of Directors Authorizes Repurchase of Additional Shares of Common Stock AIG

 

http://yhoo.it/1rPrMiZ

 

American International Group, Inc. (AIG) today announced that its Board of Directors has authorized the repurchase of additional shares of AIG Common Stock with an aggregate purchase price of up to $2.00 billion. Since the end of the 2014 first quarter, AIG has repurchased approximately $418 million of shares of AIG Common Stock. AIG’s aggregate remaining share repurchase authorization, inclusive of today’s announced $2.00 billion authorization, is approximately $2.12 billion. Repurchases may be made from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions, or otherwise.

 

“We are very pleased that the consummation of our sale of International Lease Finance Corporation and our strong capital position have allowed us to authorize this share repurchase, which enables us to return a portion of our sale proceeds directly to our shareholders,” said Robert S. Miller, Chairman of the Board of AIG.

[Liberty]

Board of Directors Authorizes Repurchase of Additional Shares of Common Stock AIG

 

http://yhoo.it/1rPrMiZ

 

American International Group, Inc. (AIG) today announced that its Board of Directors has authorized the repurchase of additional shares of AIG Common Stock with an aggregate purchase price of up to $2.00 billion. Since the end of the 2014 first quarter, AIG has repurchased approximately $418 million of shares of AIG Common Stock. AIG’s aggregate remaining share repurchase authorization, inclusive of today’s announced $2.00 billion authorization, is approximately $2.12 billion. Repurchases may be made from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions, or otherwise.

 

“We are very pleased that the consummation of our sale of International Lease Finance Corporation and our strong capital position have allowed us to authorize this share repurchase, which enables us to return a portion of our sale proceeds directly to our shareholders,” said Robert S. Miller, Chairman of the Board of AIG.

 

Great news, thanks. I wish the price to book was still lower, but this is still a good deal.

[zippy1]

AIG Names Peter D. Hancock President and CEO

NEW YORK--(BUSINESS WIRE)--

 

American International Group, Inc. (AIG) today announced that its Board of Directors has named Peter D. Hancock as President and Chief Executive Officer, AIG, effective September 1. Mr. Hancock will also join AIG’s Board of Directors, effective September 1. He currently serves as Executive Vice President, AIG, and Chief Executive Officer of AIG Property Casualty, and will succeed Robert H. Benmosche, who currently is AIG President and Chief Executive Officer.

 

As of September 1, Mr. Benmosche is expected to resign from the AIG Board of Directors and will assume an advisory role at AIG. In that capacity, Mr. Benmosche will advise the CEO and continue to be involved in AIG’s internal leadership development programs, as well as mentor and coach AIG managers.

http://finance.yahoo.com/news/aig-names-peter-d-hancock-200400399.html

[CorpRaider]

Any thoughts on this guy?  JPM financial products background....really?  Seems like someone with an underwriting background or even sales, would be preferable. 

[peter1234]

Any thoughts on this guy?  JPM financial products background....really?  Seems like someone with an underwriting background or even sales, would be preferable.

 

He has managed AIG P&C since spring 2011. I think he was the expected guy. Certainly knows the company and biz by now.

:)

 

Wintrob manages the life insurance biz and was a contender. Lives in Santa Monica, CA. Been with AIG since 1999 when they took over SunAmerica.

 

Hancock certainly guarantees continuity. Has he run Metlife or another big insurer before? No. Benmosche are big shoes to step into.

;)

[MYDemaray]

Some nice words from Ajit Jain back in 2011:

 

Those who know Mr. Hancock aren't betting against him.

 

"Peter is an astute evaluator of risk…and he figures things out very quickly," said Ajit Jain, who heads Berkshire Hathaway Inc.'s reinsurance business and has known Mr. Hancock socially and professionally for a decade. "He will recognize faster those things the insurance industry does poorly and be in a better position to find untapped potential."

[fareastwarriors]

This was published a little while ago but it has some background on Hancock and, former contender, Wintrob.

 

 

Race for AIG's Top Job Has Two Favorites

 

Internal Candidates Hancock, Wintrob Are Seen as Front-Runners to Succeed Benmosche

 

 

 

http://online.wsj.com/news/articles/SB10001424052702304655304579552313579304946?mod=WSJ_hp_LEFTWhatsNewsCollection&mg=reno64-wsj

[fareastwarriors]

Any thoughts on this guy?  JPM financial products background....really?  Seems like someone with an underwriting background or even sales, would be preferable.

 

He has managed AIG P&C since spring 2011. I think he was the expected guy. Certainly knows the company and biz by now.

:)

 

Wintrob manages the life insurance biz and was a contender. Lives in Santa Monica, CA. Been with AIG since 1999 when they took over SunAmerica.

 

Hancock certainly guarantees continuity. Has he run Metlife or another big insurer before? No. Benmosche are big shoes to step into.

;)

 

 

 

 

Article in the Journal regarding the mgmt changes.

http://online.wsj.com/articles/aig-names-peter-d-hancock-new-ceo-1402431528?mod=WSJ_hp_LEFTWhatsNewsCollection

 

 

 

In recent months, the insurer's board had also looked closely at another internal candidate, Jay Wintrob, who runs the company's big life-insurance and retirement business.

 

Mr. Miller said he told Mr. Wintrob that "both candidates were viewed as highly valuable," and that Mr. Wintrob said he would stay. "The role Jay has going forward is something for Jay and Peter to talk out," Mr. Miller added. Mr. Wintrob didn't respond to a request for comment.

 

Mr. Hancock said, "I will work very hard to persuade him to stay."

 

Mr. Wintrob may be wooed about CEO jobs elsewhere, but "I can't imagine him making a [job] change—at least not quickly,'' said one retired insurance-industry recruiter who knows him well. "Jay is very loyal to AIG,'' the acquaintance added.

 

[Cardboard]

It is time to split the company into two parts: Property & Casualty along with the mortgage insurance division leg by Peter Hancock and Life Insurance & Retirement leg by Wintrob.

 

IMO, this would be a win-win all around: better valuations since they are easier to compare with peers, smaller companies to manage requiring less federal supervision, experienced CEO for each capable to drive the best destiny for their own business.

 

Cardboard

[ourkid8]

Don't forget United Guaranty Corporation as we can essentially split the company up in 3...

 

It is time to split the company into two parts: Property & Casualty along with the mortgage insurance division leg by Peter Hancock and Life Insurance & Retirement leg by Wintrob.

 

IMO, this would be a win-win all around: better valuations since they are easier to compare with peers, smaller companies to manage requiring less federal supervision, experienced CEO for each capable to drive the best destiny for their own business.

 

Cardboard

[zippy1]

AIG To Redeem 4.875% Notes Due 2016 and 3.800% Notes Due 2017

http://finance.yahoo.com/news/aig-redeem-4-875-notes-201000293.html

American International Group, Inc. (AIG) today announced that it will redeem all of its outstanding 4.875% Notes Due 2016 (CUSIP No. 026874CB1) (the “2016 Notes”) and all of its outstanding 3.800% Notes Due 2017 (CUSIP No. 026874CS4) (the “2017 Notes” and, together with the 2016 Notes, the “Notes”) on July 31, 2014 (the “Redemption Date”). On the Redemption Date, AIG will pay to the registered holders of each series of Notes a redemption price per $1,000 principal amount of Notes as determined in accordance with the applicable indenture governing such series of Notes, plus accrued and unpaid interest to, but not including, the Redemption Date. The Notes are part of the Direct Investment book (“DIB”) and will be repaid using cash allocated to the DIB. As of July 1, 2014, $790,175,000 aggregate principal amount of 2016 Notes were outstanding and $1,250,000,000 aggregate principal amount of 2017 Notes were outstanding.

[zippy1]

AIG Announces Early Participation Results of Its Tender Offers and Increases in the Amounts to Be Accepted

http://finance.yahoo.com/news/aig-announces-early-participation-results-125400961.html

American International Group, Inc.

June 26, 2014 8:54 AM

NEW YORK--(BUSINESS WIRE)--

 

American International Group, Inc. (AIG) today announced the results as of the Early Participation Date of its previously announced cash tender offers for the junior subordinated debentures issued or guaranteed by AIG listed in the table below under the caption “Junior Tender Offer” (the “Junior Debt Securities”) and the senior notes and debentures issued or guaranteed by AIG listed in the table below under the caption “Senior Tender Offer” (the “Senior Debt Securities” and, together with the Junior Debt Securities, the “Securities”), pursuant to its offer to purchase dated June 12, 2014 (the “Offer to Purchase”). AIG also announced increases in the maximum aggregate principal amounts of Junior Debt Securities and Senior Debt Securities AIG can purchase in the tender offers. The maximum aggregate purchase price for securities purchased in the Junior Tender Offer has been increased to $1.8 billion, and the maximum aggregate purchase price for securities purchased in the Senior Tender Offer has been increased to $700 million.

 

[jay21]

This widely repeated narrative ignores or downplays a critical aspect of AIG’s downfall—the insurer’s securities lending program run for the benefit of its regulated life insurance subsidiaries.

 

...

 

As consequential as it was to AIG in a time of crisis, nobody likes to tell the securities lending part of the story. First, it doesn’t feed as nicely into the vilification of derivatives that laced crisis narratives and fueled calls for an intense derivatives regulatory regime. Second, the fact that heavily regulated insurance companies got into trouble does not support the call for greater reliance on government regulators. Finally, the rescue of a deeply troubled company is less defensible than the rescue of a healthy insurance company with a troubled derivatives subsidiary.

 

...

 

Geithner recounts in his book that—looking for confirmation that a loan to AIG would comply with the legal requirement that “the Fed can only lend against reasonably solid collateral”—he asked Warren Buffett “what he thought about the earning power of AIG’s traditional insurance subsidiaries.” Buffett “was pretty positive about their underlying value, which made [Geithner] more confident that [the Fed] could meet the legal test of being secured to [its] satisfaction.” Buffett’s words of assurance to Geithner weren’t matched by a willingness to put his own money on the line; he refused AIG’s overtures to invest during 2008.

 

http://www.americanbanker.com/bankthink/aigs-collapse-the-part-nobody-likes-to-talk-about-1068110-1.html

[fareastwarriors]

AIG claws back $2bn from banks on crisis loan bonds

 

http://www.ft.com/intl/cms/s/0/42648304-05eb-11e4-89a5-00144feab7de.html#axzz383LVVAki

 

AIG has recovered more than $2bn in settlements with banks over the soured mortgage bonds that helped push the world’s biggest insurer to the brink of failure during the financial crisis.

 

The mostly private deals mean that AIG is unlikely to pursue further legal action against big banks for mis-selling mortgage-backed securities before 2008, effectively closing one of the most contentious chapters in the company’s 95-year history.

 

 

“We have had settlement discussions with many banks that have ended up, I think, very favourably for both sides,” Peter Hancock, AIG’s incoming chief executive, said in his first interview since the insurer announced that he would take over from Bob Benmosche, the strident CEO who helped return the company to profitability.

 

AIG was once one of the biggest buyers of mortgage bonds and also wrote $50bn worth of credit default swaps – a financial product developed by Mr Hancock while he was a banker at JPMorgan – that offered payouts should housing markets plummet.

 

After the subprime crash, the insurer became the epicentre of the ensuing financial shock and narrowly avoided collapse thanks to a $182bn US government bailout.

 

AIG has since embarked on an effort to rebuild its business, repay the vast infusions of taxpayer funds and recoup some of its losses from its mortgage investments.

 

The insurer announced last week that it had reached a settlement worth at least $650m with Bank of America Merrill Lynch over mortgage securities that AIG had once claimed were “marred by fraud, misrepresentations and omissions”.

 

AIG has also recouped at least $1.3bn in a dozen out-of-court settlements with banks including Morgan Stanley and JPMorgan Chase, according to people familiar with the matter.

 

Mr Hancock declined to comment on specific deals but said that AIG had reached private agreements as it strives to cut down on costs and boost profit margins from its insurance business.

 

When he takes control from September he will inherit a company whose stock has recovered to $55.50 from a nadir of $7 in early 2009, but which remains under pressure to boost returns to shareholders.

 

AIG also faces new regulatory oversight from the Federal Reserve after being designated“systemically-important” by US regulators who are worried that non-bank members of the so-called “shadow banking system” could pose a threat to financial stability.

 

AIG has been increasing its lending to businesses as it seeks to raise returns on its vast portfolio of securities amid continued low interest rates. Last month, it said it would team up with Oak Hill Capital Partners, the private equity group, to create a joint venture to make at least $1.5bn worth of loans to midsized companies.

 

The move comes as shadow banks are increasing their lending to US businesses. More than a quarter of the loans extended last year to middle-market companies were made by financiers that fall outside the realm of traditional banking.

 

“If you’ve got long-term liabilities, that cash has got to be put to work somewhere, and putting it all to work in rated securities is, frankly, putting way too much store in the value of a rating,” Mr Hancock said. “It’s harder and harder to find attractive yields, and the direct lending is certainly one area where it makes sense [to try to counter that].”

 

[meiroy]

"“We have had settlement discussions with many banks that have ended up, I think, very favourably for both sides,”"

 

hehehe. did we just get a spin-master as CEO for AIG... I wonder if Benmosche would say something like that.