Alekbaylee Posted August 1, 2014 Share Posted August 1, 2014 Anyone adding before Q Results on Monday? I'm strongly tempted and debating with myself... :-\ Link to comment Share on other sites More sharing options...
MYDemaray Posted August 1, 2014 Share Posted August 1, 2014 seems like lots of P&C players getting hit after earnings due to higher losses...may pay to wait Link to comment Share on other sites More sharing options...
CorpRaider Posted August 1, 2014 Share Posted August 1, 2014 Nah i want sub $50. Link to comment Share on other sites More sharing options...
plato1976 Posted August 2, 2014 Share Posted August 2, 2014 I am debating with myself which one is a better deal BAC or AIG at this price I gradually favor BAC more. Nah i want sub $50. Link to comment Share on other sites More sharing options...
Alekbaylee Posted August 2, 2014 Share Posted August 2, 2014 I have both but prefer AIG. Will grow faster than BAC IMHO. Link to comment Share on other sites More sharing options...
plato1976 Posted August 2, 2014 Share Posted August 2, 2014 why? b/c of bigger buyback? I have both but prefer AIG. Will grow faster than BAC IMHO. Link to comment Share on other sites More sharing options...
Alekbaylee Posted August 2, 2014 Share Posted August 2, 2014 That and because under Benmosche AIG has finished cleaning its house. So the new CEO can now concentrate and capitalize on its huge worldwide franchise to grow business and bring down the u/w ratio. So less uncertainty compared to BAC that's still facing a number of lawsuits. Link to comment Share on other sites More sharing options...
Liberty Posted August 4, 2014 Share Posted August 4, 2014 http://phx.corporate-ir.net/phoenix.zhtml?c=76115&p=irol-newsArticle&ID=1954815&highlight= Second quarter 2014 after-tax operating income attributable to AIG of $1.8 billion, $1.25 per diluted share Second quarter 2014 insurance pre-tax operating income of $2.7 billion Completed the sale of ILFC to AerCap Holdings N.V.; total consideration of approximately $7.6 billion Additional share repurchase authorization of $2.0 billion, with approximately $1.1 billion of shares repurchased during the second quarter of 2014 $1.6 billion of cash dividends and loan repayments to AIG Parent from insurance subsidiaries in the second quarter of 2014 Combined ration 98.8 on the P&C side. Link to comment Share on other sites More sharing options...
mankap Posted August 4, 2014 Share Posted August 4, 2014 Good to see BV increase by 10% yoy. BV is at 68 now. Finally COR is less than 100. There is a decrease in acquisition cost. I hope it is going to stay <100 now. Still some more work need to be done for ROE to reach 10% Link to comment Share on other sites More sharing options...
Uccmal Posted August 5, 2014 Share Posted August 5, 2014 The stock reaction is interesting. I guess they mentioned pricing pressure in the Conference Call. I dont see how this matters to AIG that much. It is a simple matter of pulling back on product. I think it is mostly restricted to the P&C unit. The Life Unit will get more profitable as interest rates rise. They carry 15.7 B in debt. During July they issued 1 B of 5 yr. notes yielding 2.33%; and 1.5 B of 4.5% 30 year notes. That is cheap financing to say the least. Their yield on their investments is slightly above 4%, at a cyclical low. When the interest rates begin to turn the spread will increase. The only mega insurer trading below Book, for no reason I can see. Retiring about 5% of shares per year at present rates. Link to comment Share on other sites More sharing options...
plato1976 Posted August 5, 2014 Share Posted August 5, 2014 when rate rises, won't those long-dated bonds on its book lose big value and decrease its book value quite a lot? The stock reaction is interesting. I guess they mentioned pricing pressure in the Conference Call. I dont see how this matters to AIG that much. It is a simple matter of pulling back on product. I think it is mostly restricted to the P&C unit. The Life Unit will get more profitable as interest rates rise. They carry 15.7 B in debt. During July they issued 1 B of 5 yr. notes yielding 2.33%; and 1.5 B of 4.5% 30 year notes. That is cheap financing to say the least. Their yield on their investments is slightly above 4%, at a cyclical low. When the interest rates begin to turn the spread will increase. The only mega insurer trading below Book, for no reason I can see. Retiring about 5% of shares per year at present rates. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 5, 2014 Share Posted August 5, 2014 AIG to pay $960M to settle shareholder lawsuits http://bigstory.ap.org/article/aig-pay-960m-settle-shareholder-lawsuits Link to comment Share on other sites More sharing options...
Uccmal Posted August 7, 2014 Share Posted August 7, 2014 when rate rises, won't those long-dated bonds on its book lose big value and decrease its book value quite a lot? The stock reaction is interesting. I guess they mentioned pricing pressure in the Conference Call. I dont see how this matters to AIG that much. It is a simple matter of pulling back on product. I think it is mostly restricted to the P&C unit. The Life Unit will get more profitable as interest rates rise. They carry 15.7 B in debt. During July they issued 1 B of 5 yr. notes yielding 2.33%; and 1.5 B of 4.5% 30 year notes. That is cheap financing to say the least. Their yield on their investments is slightly above 4%, at a cyclical low. When the interest rates begin to turn the spread will increase. The only mega insurer trading below Book, for no reason I can see. Retiring about 5% of shares per year at present rates. Of course your are correct. i tired to find a sensitivity chart in the 10Q but cant. It might be in the 10K. All insurers are subject to the same movements, except the bond wizards at FFh. The other insurers: Travellers, Chubb, AllState, MFC, SLf, are trading at 1.2 to 1.4 ex AOCI. AIG is at 0.8. Therefore AIG has a 50% upside in the prevailing environment, or the others have a significant downside, if you like. That takes me to $80.00 per share. Link to comment Share on other sites More sharing options...
ukvalueinvestment Posted August 7, 2014 Share Posted August 7, 2014 Is there investment portfolio held at cost? If so, won't that 4% yield go lower before it goes higher? Isn't the 4% average held up by bonds bought before interest rates collapsed in 2008/09? Think Buffett said something about this in his letter. I think it's a bit complacent to assume interest rates will go up and investment income must rise. Link to comment Share on other sites More sharing options...
MYDemaray Posted August 7, 2014 Share Posted August 7, 2014 Of course your are correct. i tired to find a sensitivity chart in the 10Q but cant. It might be in the 10K. All insurers are subject to the same movements, except the bond wizards at FFh. Found in 10-K, Item 7: Enterprise Risk Management Looks like a 1 std. deviation move in interest rates (100bps parallel shift) and Equities (20% downdraft), simultaneously would produce about a $21bn loss ($15bn loss on $282bn of fixed income, and $6bn loss on $29bn of equities) which is almost as large as the discount to book. All debt securities are held available for sale at fair market value, and none qualify for held to maturity (amortized cost) treatment. Average duration for (U.S.) P&C fixed income is 3.9 years and average duration for Life is 6.4 years. Maturities are selected based on duration matching with liabilities. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 12, 2014 Share Posted August 12, 2014 Taking AIG From 'Sucks' to 'Rocks' http://www.businessweek.com/articles/2014-08-07/aigs-new-ceo-includes-risk-in-the-profit-equation#r=nav-f-story Link to comment Share on other sites More sharing options...
Liberty Posted August 28, 2014 Share Posted August 28, 2014 http://www.bloomberg.com/video/aig-ceo-robert-benmosche-exit-sped-up-amid-cancer-prognosis-WV5E85M3So6SEufeE5XwYg.html I wish him the best. Link to comment Share on other sites More sharing options...
fareastwarriors Posted August 28, 2014 Share Posted August 28, 2014 http://www.bloomberg.com/video/aig-ceo-robert-benmosche-exit-sped-up-amid-cancer-prognosis-WV5E85M3So6SEufeE5XwYg.html I wish him the best. Yes, what a guy. http://www.bloomberg.com/news/2014-08-28/benmosche-sped-up-aig-exit-amid-year-to-live-prognosis.html#disqus_thread Link to comment Share on other sites More sharing options...
fareastwarriors Posted September 15, 2014 Share Posted September 15, 2014 Trial Over AIG Bailout Carries Risk for Insurer Firm Run by Former AIG Boss Greenberg Is Suing U.S. Government; Problem in the Fine Print http://online.wsj.com/articles/trial-over-aig-bailout-carries-risk-for-insurer-1410727085 Link to comment Share on other sites More sharing options...
Mephistopheles Posted September 16, 2014 Share Posted September 16, 2014 Trial Over AIG Bailout Carries Risk for Insurer Firm Run by Former AIG Boss Greenberg Is Suing U.S. Government; Problem in the Fine Print http://online.wsj.com/articles/trial-over-aig-bailout-carries-risk-for-insurer-1410727085 "Starr also alleges that in June 2009 the government used its control over AIG to make it propose a reverse stock split that eventually further diluted shareholders." Am I missing something here? How is that dilutive? Link to comment Share on other sites More sharing options...
Liberty Posted September 19, 2014 Share Posted September 19, 2014 http://online.wsj.com/articles/wintrob-leaving-as-head-of-aig-life-retirement-unit-1411075441 American International Group Inc. AIG -1.49% 's longtime head of its life-insurance and retirement-services unit is leaving the company to pursue other opportunities, after being passed over for the top job in June. The executive, Jay Wintrob, 57 years old, had been seriously considered by the board of the New York insurance conglomerate to succeed retiring CEO Robert Benmosche. In appointing Peter Hancock instead, the board's chairman in June had said he hoped the highly experienced Mr. Wintrob would stay, and Mr. Hancock, 56, had said he would work "very hard to persuade him to stay." Mr. Wintrob has been with AIG for more than 25 years, and his unit has been a strong contributor to the company's profitability in recent quarters despite low interest rates and other tough economic conditions. Link to comment Share on other sites More sharing options...
fareastwarriors Posted September 19, 2014 Share Posted September 19, 2014 http://online.wsj.com/articles/wintrob-leaving-as-head-of-aig-life-retirement-unit-1411075441 American International Group Inc. AIG -1.49% 's longtime head of its life-insurance and retirement-services unit is leaving the company to pursue other opportunities, after being passed over for the top job in June. The executive, Jay Wintrob, 57 years old, had been seriously considered by the board of the New York insurance conglomerate to succeed retiring CEO Robert Benmosche. In appointing Peter Hancock instead, the board's chairman in June had said he hoped the highly experienced Mr. Wintrob would stay, and Mr. Hancock, 56, had said he would work "very hard to persuade him to stay." Mr. Wintrob has been with AIG for more than 25 years, and his unit has been a strong contributor to the company's profitability in recent quarters despite low interest rates and other tough economic conditions. that's too bad. Link to comment Share on other sites More sharing options...
fareastwarriors Posted September 24, 2014 Share Posted September 24, 2014 Benmosche: Berkshire Hathaway, AIG Ceasefire Is Over Now http://www.bloomberg.com/video/bob-benmosche-berkshire-hathaway-aig-ceasefire-is-over-now-WZHygfZwRU29sar1OK67rQ.html Link to comment Share on other sites More sharing options...
mlcglobal Posted September 26, 2014 Share Posted September 26, 2014 http://www.businessweek.com/videos/2014-09-25/titans-at-the-table-robert-benmosche-09-25 Link to comment Share on other sites More sharing options...
mlcglobal Posted September 26, 2014 Share Posted September 26, 2014 Berkowitz... https://www.youtube.com/watch?v=q3v0-jKxUG0 Link to comment Share on other sites More sharing options...
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