PlanMaestro Posted December 12, 2012 Author Share Posted December 12, 2012 someone please correct me if I am wrong. I cannot find a single meaningful metric where AIG has not shown some improvement. This goes from capital, leverage, underwriting, etc. i have also looked at their stats from NAIC/reguatlors perspective and its the same trend, things are improving. Even their annual reports are much better in terms of explaining details. I have one; P/BV went down. ;D Hahaha! Let's hope that changes but not too soon MrB. There is one indicator that has not been going down and that is "Chartis" SG&A/net premiums. Part is the new emphasis in global markets to detriment of the US business, part is the investment in accounting systems, but it is still something to follow since the COR benefits haven't been seen yet. PS: Nice long post Link to comment Share on other sites More sharing options...
PlanMaestro Posted December 12, 2012 Author Share Posted December 12, 2012 Insurers must learn lessons from AIG. Business still being done in the name of insurance bears little resemblance to it http://www.ft.com/intl/cms/s/0/5fdfc466-444f-11e2-932a-00144feabdc0.html#axzz2ElgIamIl (How things have changed) Link to comment Share on other sites More sharing options...
Liberty Posted December 12, 2012 Share Posted December 12, 2012 Insurers must learn lessons from AIG. Business still being done in the name of insurance bears little resemblance to it http://www.ft.com/intl/cms/s/0/5fdfc466-444f-11e2-932a-00144feabdc0.html#axzz2ElgIamIl (How things have changed) For those of us who don't have a FT subscription, could you quote a choice excerpt or summarize the gist of it please? Thank you. :) Link to comment Share on other sites More sharing options...
mankap Posted December 12, 2012 Share Posted December 12, 2012 Hi Type AIG ang and ft in google.You will be able to read tha article even without subscription. Link to comment Share on other sites More sharing options...
Liberty Posted December 12, 2012 Share Posted December 12, 2012 Hi Type AIG ang and ft in google.You will be able to read tha article even without subscription. Thanks, I knew about that trick, but didn't know FT was one of the sites with which it worked. Link to comment Share on other sites More sharing options...
jeffmori7 Posted December 12, 2012 Share Posted December 12, 2012 Glad I bought a full position in AIG yesterday morning. But guys, don't buy too soon, now that I'm in it'll tank 30-40% any day now :P Ok, if my investment in AIG drop as much as FTP, I will know who to blame! Seriously, welcome on board! Link to comment Share on other sites More sharing options...
PlanMaestro Posted December 13, 2012 Author Share Posted December 13, 2012 http://www.propertycasualty360.com/2012/12/12/reports-agree-modest-rate-increases-continue-into?t=commercial In its “Nine Month 2012 P&C Industry Review,” ALIRT Insurance Research, LLC, says it expects “gentle premium increases,” but notes there are factors at play that “may well moderate price increases going forward.” “A market that experiences gentle premium increases may be the best outcome for all stakeholders as carriers’ financial stability is sustained, capacity/coverage remains plentiful, and buyers do not face painful ‘sticker shock’ at renewal,” says ALIRT. Link to comment Share on other sites More sharing options...
biaggio Posted December 14, 2012 Share Posted December 14, 2012 Feel free to suggest Ben as a guest to the Charlie Rose producers. charlierose at pbs.org I just sent them the following. Dear Producers, Bob Benmosche more or less completed the most significant turnaround in US taxpayer history. Thereby saving one of the oldest and most significant insurance brands in the world and achieved this whilst while suffering from life threatening cancer. Surely he will be a good candidate to interview on your show? I attached a recent New York Magazine article for your perusal. MrB, Charlie Rose appears to have responded very quickly to your request- very impressive http://www.businessweek.com/articles/2012-12-13/charlie-rose-talks-to-aig-chief-robert-benmosche?campaign_id=yhoo Link to comment Share on other sites More sharing options...
fareastwarriors Posted December 14, 2012 Share Posted December 14, 2012 Treasury Completes Sale of AIG Stock . http://professional.wsj.com/article/SB10001424127887323981504578179321427338636.html?mod=WSJ_hp_LEFTWhatsNewsCollection The U.S. Treasury said Friday that it completed the sale of American International Group Inc. common stock, dispensing with its remaining 234 million shares at a price of $32.50 per share. After the sale, the Treasury no longer holds common shares of the insurance company. In January 2011, the department held 92% of AIG's outstanding stock. Since then, Treasury has conducted six public offerings of AIG common stock through which it sold 1.655 billion shares at an average price of $31.18 per share. The department continues to hold warrants to purchase approximately 2.7 million shares. The Treasury says it recovered $74.8 billion on its initial $69.8 billion investment in AIG. In total, including payments to the Federal Reserve, the government netted a $22.7 billion profit on its AIG investment, the department said. The sale of AIG stock is part of Treasury's ongoing effort to wind down the Troubled Asset Relief Program, or TARP. Including the proceeds collected Friday, more than 90% of the $418 billion disbursed from the bailout fund have been recovered. Still the fund, which also included investments in the auto industry and housing programs, is expected to cost tax payers $24 billion, the Congressional Budget Office estimated in October. Link to comment Share on other sites More sharing options...
alertmeipp Posted December 14, 2012 Share Posted December 14, 2012 those who got Treasury shares went home today with 350 millions profit so far. I have been potentially waiting for this. Link to comment Share on other sites More sharing options...
ShahKhezri Posted December 17, 2012 Share Posted December 17, 2012 News on AIA: http://www.bloomberg.com/news/2012-12-17/aig-offers-to-sell-as-much-as-6-5-billion-of-aia-shares.html Link to comment Share on other sites More sharing options...
mankap Posted December 17, 2012 Share Posted December 17, 2012 Now the question is what are they going to do with all this cash. I hope that they are doing this before Jan so as in the plan they submit to Fed , they can ask for approval for substantial buyback and dividend. Link to comment Share on other sites More sharing options...
CONeal Posted December 17, 2012 Share Posted December 17, 2012 Now the question is what are they going to do with all this cash. I hope that they are doing this before Jan so as in the plan they submit to Fed , they can ask for approval for substantial buyback and dividend. They have some debt coming due and claims to pay. Would like to see them use the funds to clean up the books and then use the ILFC finds if approved toward buybacks and dividends. Basically would like to see the same thing that happened with BAC. Build a fortress and then let everything above that fall to shareholders. Link to comment Share on other sites More sharing options...
MrB Posted December 17, 2012 Share Posted December 17, 2012 Now the question is what are they going to do with all this cash. I hope that they are doing this before Jan so as in the plan they submit to Fed , they can ask for approval for substantial buyback and dividend. They have some debt coming due and claims to pay. Would like to see them use the funds to clean up the books and then use the ILFC finds if approved toward buybacks and dividends. Basically would like to see the same thing that happened with BAC. Build a fortress and then let everything above that fall to shareholders. Probably how it will play out too if I understand management correctly..and my understanding is that buybacks are off the table for at least the next year..I'm ok with that...they've already done a hell of a job.. Link to comment Share on other sites More sharing options...
PlanMaestro Posted December 17, 2012 Author Share Posted December 17, 2012 Insurers May Face $11 Billion More in Asbestos Claims The insurance industry has already paid out about $51 billion in claims tied to asbestos over the past quarter century, and has $23 billion set aside for future expenses, for a total of $74 billion But the report from ratings firm A.M. Best concludes the ultimate cost of such claims will eventually hit an estimated $85 billion, instead of $75 billion, its previous estimate, published last year. The increasing cost of each claim, the recent successes of plaintiffs' attorneys, and the long latency periods for some of the more serious illnesses caused by the once widely used mineral mean "sizable losses are likely to continue for years," A.M. Best said in the report, due to be released this week. Insurers with significant exposure to asbestos claims include Hartford Financial Services Group Inc., Travelers Cos. and Warren Buffett's Berkshire Hathaway Inc., which has taken on billions in asbestos liabilities in recent years through reinsurance deals with American International Group Inc., CNA Financial Corp. CNA and Lloyd's of London. > Good that it was already taken care of last year. http://www.cornerofberkshireandfairfax.ca/forum/berkshire-hathaway/berkshire-hathaway-q2-report/msg50662/#msg50662 http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/bruce-berkowitz-has-26-of-the-fairholme-fund-in-aig-dont-you-think-you-shoul/msg68153/#msg68153 Link to comment Share on other sites More sharing options...
Uccmal Posted December 17, 2012 Share Posted December 17, 2012 Now the question is what are they going to do with all this cash. I hope that they are doing this before Jan so as in the plan they submit to Fed , they can ask for approval for substantial buyback and dividend. They have some debt coming due and claims to pay. Would like to see them use the funds to clean up the books and then use the ILFC finds if approved toward buybacks and dividends. Basically would like to see the same thing that happened with BAC. Build a fortress and then let everything above that fall to shareholders. Probably how it will play out too if I understand management correctly..and my understanding is that buybacks are off the table for at least the next year..I'm ok with that...they've already done a hell of a job.. Benmoche did mention starting a dividend during some call or interview in the last few months. After he mentioned it was when the warrants started to rise in value. They have done loads of buybacks this year. Its time for a dividend. Now, AIG is not a bank. Do they even need approval? Link to comment Share on other sites More sharing options...
CONeal Posted December 18, 2012 Share Posted December 18, 2012 Now the question is what are they going to do with all this cash. I hope that they are doing this before Jan so as in the plan they submit to Fed , they can ask for approval for substantial buyback and dividend. They have some debt coming due and claims to pay. Would like to see them use the funds to clean up the books and then use the ILFC finds if approved toward buybacks and dividends. Basically would like to see the same thing that happened with BAC. Build a fortress and then let everything above that fall to shareholders. Probably how it will play out too if I understand management correctly..and my understanding is that buybacks are off the table for at least the next year..I'm ok with that...they've already done a hell of a job.. Benmoche did mention starting a dividend during some call or interview in the last few months. After he mentioned it was when the warrants started to rise in value. They have done loads of buybacks this year. Its time for a dividend. Now, AIG is not a bank. Do they even need approval? Yes they need approval for the dividend. Bemoche has mentioned that the dividend is contigent on what the regulators say. Link to comment Share on other sites More sharing options...
ShahKhezri Posted December 18, 2012 Share Posted December 18, 2012 A month ago, I would have thought no, after raising $10Bn in two weeks, they could use $5bn on calling debt (hybrids, etc) and $5bn on repurchase/dividends. Link to comment Share on other sites More sharing options...
mankap Posted December 18, 2012 Share Posted December 18, 2012 AIG has been designated as 'SIFI' structurally important financial institution so it is under Fed supervision. They also own a small bank They have said that they will sell the bank. I think they need to go through stress test.They need to submit their plan for buyback/dividend for approval. We will know by March if they got the approval. Link to comment Share on other sites More sharing options...
txlaw Posted December 18, 2012 Share Posted December 18, 2012 $6.45 billion proceeds for rest of AIA: http://www.reuters.com/article/2012/12/18/aia-aig-idUSL4N09S01820121218 Link to comment Share on other sites More sharing options...
MYDemaray Posted December 18, 2012 Share Posted December 18, 2012 Rumors of issues with the sale of ILFC: http://www.theflyonthewall.com/permalinks/entry.php/AIGid1757153/AIG-Sale-of-AIGs-aircraft-leasing-business-now-in-doubt-WSJ-reports- EDIT: Looks like issue is change in buyer consortium. Not sure if that's really an issue. Link to comment Share on other sites More sharing options...
fareastwarriors Posted December 18, 2012 Share Posted December 18, 2012 http://www.bloomberg.com/news/2010-10-22/aig-divests-greenberg-s-asian-jewel-that-thiam-failed-to-acquire-timeline.html Benmosche Exits Greenberg Jewel Linked to AIG Founding interesting little timeline of various events in AIG's history Link to comment Share on other sites More sharing options...
hardincap Posted December 18, 2012 Share Posted December 18, 2012 AIG just freed up 11bn+. What are they going to do with all that cash? Link to comment Share on other sites More sharing options...
cayale Posted December 18, 2012 Share Posted December 18, 2012 Pay down debt, then invest in Asia, then repurchase shares is my best guess. Link to comment Share on other sites More sharing options...
hardincap Posted December 18, 2012 Share Posted December 18, 2012 Pay down debt, then invest in Asia, then repurchase shares is my best guess. I would love to see repurchases but Benmosche said he was done. Debt payments + dividends seem the next best thing to do. Link to comment Share on other sites More sharing options...
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