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AIG may join bailout lawsuit against U.S. government

2013-01-08 Reuter.com

 

A leading congressional Democrat called criticism of the deal's terms "utterly ridiculous," and former New York Attorney General Eliot Spitzer - who probed AIG when he was in office - called the prospect of a suit "insulting to the public."

 

Securities experts said AIG's board needs to consider the matter as part of its fiduciary duty, but also said it was unlikely they will actually join.

 

"If AIG enters this suit it would be the equivalent of a patient suing their doctor for saving their life," said Mark Williams, a former Federal Reserve bank examiner who teaches in the finance department at Boston University.

 

 

http://www.reuters.com/article/2013/01/08/us-aig-lawsuit-government-idUSBRE9070GR20130108

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"In considering and ultimately refusing the demand before us, the Board of Directors properly and fully executed our fiduciary and legal obligations to AIG and its shareholders," said Robert S. "Steve" Miller, Chairman of the AIG Board of Directors. "America invested in 62,000 AIG employees, and we kept our promise to rebuild this great company, repay every dollar America invested in us, and deliver a profit to those who put their trust in us. To date, AIG has returned $205 billion to America, including a profit of $22.7 billion. We continue to thank America for its support."

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Ben explaining on CNBC...a deal is a deal...sales are up...morale is up...expecting a good year

 

First time I have seen him looking tired...not his usual chirpy self...maybe my imagination

 

http://www.cnbc.com/id/100367504

 

At the end, she said "Thank you for joining us even with your cold" or something along those lines, so hopefully he was just sick.

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AIG Sues Federal Reserve Vehicle in Dispute Over Lawsuit Rights

2013-01-11 WSJ.com

 

http://blogs.wsj.com/deals/2013/01/11/aig-sues-federal-reserve-in-dispute-over-lawsuit-rights/

 

Fun.

 

At issue is whether AIG, in selling billions of dollars in troubled mortgage bonds to the New York Fed in late 2008, transferred its rights to sue for losses it incurred on the securities. The New York Fed earlier joined a lawsuit over the bonds against Bank of America Corp. that resulted in a proposed settlement, pending before a court.

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AIG to Report Fourth Quarter 2012 Results on February 21, 2013

Press Release: American International Group, Inc. – 1 hour 7 minutes ago

 

http://finance.yahoo.com/news/aig-report-fourth-quarter-2012-170000741.html

 

American International Group, Inc. (AIG) will report financial results for the fourth quarter ended December 31, 2012, after the market closes on Thursday, February 21, 2013. AIG’s Annual Report on Form 10-K, press release, and financial supplement will be available in the Investor Information section of AIG’s website at http://www.aig.com.

AIG will also host a conference call on Friday, February 22, 2013, at 8:00 a.m. ET to review these results. The call is open to the public and can be accessed via a live, listen-only webcast at http://www.aig.com. A replay will be available after the call at the same location.

 

 

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AIG Gets Reinsurance Coverage

 

http://finance.yahoo.com/news/aig-gets-reinsurance-coverage-215853970.html

 

In a bid to protect itself from natural disasters, American International Group Inc. (AIG) recently inked a reinsurance deal with Compass Re Ltd. The deal entails AIG to obtain reinsurance coverage worth up to $400 million.

 

The transaction was financed by a $400 million catastrophe bond issued by Compass Re Ltd. in a single tranche. Using an index-based risk transfer with state-specific payment factors, the deal will provide fully collateralized coverage for AIG against catastrophe losses like Hurricanes and earthquakes occurring through December 2014.

 

...

 

The Zacks Consensus Estimate for the fourth quarter of 2012 is a loss of 11 cents representing a year-over-year decline of 113.3%. However, for full year 2012, it is currently pegged at $3.75, reflecting year-over-year growth of 267.9%.

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http://www.bloomberg.com/news/2013-01-15/greenberg-s-starr-hires-aig-s-hayman-for-international-insurance.html

 

Greenberg’s Starr Hires Hayman From AIG to Expand in Asia

 

 

Maurice “Hank” Greenberg’s Starr International Co. named Jeffrey Hayman as president of international insurance operations as the company looks to expand in Asia.

 

Hayman previously led global consumer insurance at American International Group Inc. (AIG)’s property-casualty unit. He has worked in the U.S. and Asia and is a director of the Korea Society and the Japan Society, Starr said yesterday in a statement.

Hayman’s “experience, particularly in Asia, is a unique fit for our organization,” Greenberg said in the statement. “We expect that he will contribute to our continued growth in the international marketplace.”

 

Greenberg, 87, has built Starr’s business in Asia since leaving AIG, the firm he led for almost four decades through 2005 and built into the world’s largest insurer. He said last year that the region offers investment opportunities.

Greenberg has looked to hire from his former firm in the past. Starr named Charles Dangelo chief executive officer and Jim Vendetti chief underwriting officer of its subsidiary, Starr Indemnity & Liability, after AIG’s 2008 U.S. government rescue.

 

Hayman received a bachelor’s degree in economics and political science from Saint Olaf College in Minnesota and a master’s of business administration from the University of Hartford in Connecticut, according to the statement.

Peter Hancock, who leads AIG’s property-casualty business, will oversee consumer operations until Hayman’s successor is named, Jon Diat, an AIG spokesman, wrote in an e-mail. AIG repaid the remainder of its government bailout last year.

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No clue who is Kovitz (http://www.kovitzinvestment.com/), but it's a good summary of where we stand today.

 

http://www.scribd.com/fullscreen/120509298?access_key=key-27r3oq7tv6razk5y7tn0

 

One of the two new positions we added was American International Group (AIG), a company that was effectively nationalized at the height of the financial crisis when the government cobbled together a $182 billion rescue package. Fast forward to today: the government’s stake has been all but eliminated (at a profit of over $20 billion) and the company bears little resemblance to the complex, unwieldy mix of businesses it once was. AIG has slimmed down to the point where it has two primary lines of business, property and casualty insurance and lifeinsurance, and we consider both to be leaders in their respective markets.

 

However, it appears as if the market is still punishing the company for its old ways as its current price is roughly 50% of tangible book value. A valuation this low implies that the company will earn no more than a 3-4% return on equity, an estimate that we believe to be overly pessimistic. With the company rationalizing its non-core operations and executing an operational turnaround, we consider it a cheap restructuring play.

 

We believe AIG’s continued optimization of its portfolio of businesses should free up additional excess capital that,subject to regulatory approval, can likely be returned to shareholders primarily through share buybacks. With the company’s shares selling below tangible book value, share repurchase activity would be highly accretive. In December, the lockup of AIG’s interest in the stock of AIA Group, its listed, non-core Asian life insurance business, expired, which allowed the company to monetize its unencumbered 13.7% interest for $6.4 billion. Further, the recently announced sale of 90% of ILFC, AIG’s aircraft lessor subsidiary, will not only generate $4+ billion in excess capital but also simplify the company’s structure and reduce its cost of capital. Also, we think that the recently announced government’s sale of its remaining stake in AIG will serve as a critical catalyst for thecompany, because it will allow the initiation of a dividend, a change in management’s compensation structure to more closely align management’s incentives with shareholders’ interests, and the removal of the “overhang” of U.S. Treasury ownership. Given these multiple paths to value creation, we believe the price of AIG shares will ultimately trend towards book value, if not higher, over time.

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http://www.nytimes.com/2013/01/16/business/aig-seeks-ability-to-sue-more-banks-over-mortgage-securities.html?pagewanted=2&_r=0&ref=business

 

A.I.G. Seeks Approval to File More Bank Suits

 

In 2011, A.I.G. tried to buy back the entire pool of mortgage securities from Maiden Lane II, but its offer, about $15 billion, was rejected.

 

Subsequently other bidders acquired all the assets, and last February the New York Fed announced it had made a $2.8 billion profit on its roughly $20 billion investment in the rescue entity. Terms of the bailout called for it to give one-sixth of any profit to A.I.G.

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Tata AIG Gen launches service for approving claims within four hours

2013-01-21 MoneyLife.in / India

 

http://www.moneylife.in/article/tata-aig-gen-launches-service-for-approving-claims-within-four-hours/30853.html

 

The fast-track approval feature is available for existing as well as the new customers of Tata AIG General Insurance

 

Mumbai: Tata AIG General Insurance says it has introduced a service where it will settle health claims within four hours of filing for a claim, reports PTI.

 

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The insurer, a joint venture between the Tata Group and American International Group Inc (AIG), has eight health policies under its portfolio. It has sold over 20,000 health polices between April-December 2012.

 

 

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Traveller's results bode well for AIG

TRV is seeing improved pricing in insurance products.I am hoping that AIG will also show similar price increases.

 

This is from TRV's results today.

“We are very encouraged by pricing trends across all three business segments. Renewal rate change in Business Insurance was approximately 8%, up from nearly 6% in the fourth quarter of last year and consistent with recent quarters. Renewal rate change in Financial, Professional and International Insurance improved to 4%, and we once again achieved double-digit pricing improvements in Personal Insurance

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Beware it's only a weekly satirical column... ::)

 

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A.I.G. rethinking if it had role in collapse

2013-01-21 McPhersonSentinel.com

By Philip Maddocks

 

Less than a week after declining to join a lawsuit against the federal government over its $182 billion financial crisis bailout, the American International Group says it is now questioning whether the company played any sort of role at all in the financial collapse.

 

http://www.mcphersonsentinel.com/article/20130121/OPINION/130129922/1007/OPINION#art-tit

 

 

The board says it is confused about how A.I.G. could have remained in business if its shareholders lost tens of billions of dollars, as some have said. "That is a real puzzle for some of us here," said one board member. "I guess there is still a lot we don't understand about that whole business."

 

 

 

 

 

 

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Sure, we insured everyone against default and they nearly all defaulted, and we had no role.

And if they had been allowed to default we would be out of business. 

 

Idiots, Almost wants to make me sell my stock.  At least it gives them something to focus on while the real workers at AIG rebuild the company.

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Sure, we insured everyone against default and they nearly all defaulted, and we had no role.

And if they had been allowed to default we would be out of business. 

 

Idiots, Almost wants to make me sell my stock.  At least it gives them something to focus on while the real workers at AIG rebuild the company.

 

Uccmal,...

 

haven't you seen my heading,... that is only some fake satirical column by Philip Maddocks,... or at least it's seems the way as I understood it,... so you might come calm.

 

 

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Now, here comes some serious article, you might be able to gawk.

 

 

FAHR: AIG apparently not too big to be greedy

2013-01-22 TheVoice

http://www.voicenews.com/articles/2013/01/22/opinion/doc50f9ae22e02f3813718692.txt

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MyEG aims 30% annual sales from commercial products

2013-01-22

 

MyEG Services Bhd, which teamed up with AIG Malaysia Insurance Bhd to offer the latter's insurance products online yesterday, is targeting an annual sales growth of 30% within three years driven by its commercial products, said its group managing director Wong Thean Soon.

 

He said AIG Malaysia is also optimistic to achieve the targeted 12% and 15% growth in net premium annually in the next five years, driven by its ongoing effort to introduce new products.

 

http://www.thesundaily.my/news/595687

 

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AIG aims to grow through non-traditional channel

2013-01-23 FMT - FreeMalaysiaToday.com

http://www.freemalaysiatoday.com/category/business/2013/01/23/aig-aims-to-grow-through-non-traditional-channel/

 

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AIG: ‘Rosy’ outlook for M'sian insurers

2013-01-23 TheStar.com Online

http://biz.thestar.com.my/news/story.asp?file=/2013/1/23/business/12613239&sec=business

 

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Guest wellmont

weird I sold some warrants over $15 in September when the stock was trading under $35. make of this information what you will. :) perhaps a theory is there was a lot of hot money in the warrants back then speculating on bigger buybacks.

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Sure, we insured everyone against default and they nearly all defaulted, and we had no role.

And if they had been allowed to default we would be out of business. 

 

Idiots, Almost wants to make me sell my stock.  At least it gives them something to focus on while the real workers at AIG rebuild the company.

 

Uccmal,...

 

haven't you seen my heading,... that is only some fake satirical column by Philip Maddocks,... or at least it's seems the way as I understood it,... so you might come calm.

 

 

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Now, here comes some serious article, you might be able to gawk.

 

 

FAHR: AIG apparently not too big to be greedy

2013-01-22 TheVoice

http://www.voicenews.com/articles/2013/01/22/opinion/doc50f9ae22e02f3813718692.txt

 

whoops.  Getting too tired this week.

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Sure, we insured everyone against default and they nearly all defaulted, and we had no role.

And if they had been allowed to default we would be out of business. 

 

Idiots, Almost wants to make me sell my stock.  At least it gives them something to focus on while the real workers at AIG rebuild the company.

 

Uccmal,...

 

haven't you seen my heading,... that is only some fake satirical column by Philip Maddocks,... or at least it's seems the way as I understood it,... so you might come calm.

 

 

-----

Now, here comes some serious article, you might be able to gawk.

 

 

FAHR: AIG apparently not too big to be greedy

2013-01-22 TheVoice

http://www.voicenews.com/articles/2013/01/22/opinion/doc50f9ae22e02f3813718692.txt

 

whoops.  Getting too tired this week.

 

I already was this tired that I made a short 3 hour nap in middle of my day.

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weird I sold some warrants over $15 in September when the stock was trading under $35. make of this information what you will. :) perhaps a theory is there was a lot of hot money in the warrants back then speculating on bigger buybacks.

 

No plans to sell my AIG tarp warrants,... it makes no sense for me to trade much. They have become much cheaper (currently below $14) relative to the recent run-up in the BAC a-warrants around x-mas. I'm not sure if they ever reach the most upper limits, probably more unlikely, but over the next 3 years they might double at least and that would equate to some good growth of something above ~25% annualized.

 

I might repost some older article...

 

Berkowitz Owns 1/3 Of AIG's TARP Warrants, And He Can't Get Out

http://seekingalpha.com/article/668281-berkowitz-owns-1-3-of-aig-s-tarp-warrants-and-he-can-t-get-out?source=forbes

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