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American International Group, Inc. (AIG)

NYSE - Nasdaq Real-time price. Currency in USD
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52.77+3.17 (+6.39%)
At close: 04:00PM EDT
53.22 +0.45 (+0.85%)
After hours: 07:40PM EDT
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  • L
    Luke
    On 8/28/20 Bought 2000 at $29 ($58K)
    On 1/8/21 Bought 788 @$40 ($31K)

    Dividend reinvestment. Haven't really looked at it since then so it's now 2912 shares, worth $144K.

    Now declining but not like its big drop in early 2020. Does anyone remember what caused that?
  • D
    DoublinDown
    Great buy point right here. AIG undervalued to every comp within its industry
  • J
    Jacob
    Market conditions may delay IPO which is scheduled for this quarter.
  • j
    josh
    Significant progress on Life and Retirement separation from AIG, with key steps taken toward the establishment of a standalone capital structure, public filing of the S-1 registration statement, Corebridge Financial, Inc. (Corebridge) brand debut and strong independent additions to the Corebridge Board of DirectorsAnnounced asset management relationship with BlackRock to manage up to $150 billion of liquid assets for AIG and CorebridgeGeneral Insurance combined ratio of 92.9% improved by 5.9 points from the prior year quarterGeneral Insurance adjusted* accident year combined ratio of 89.5% improved by 2.9 points from the prior year quarterNet income per diluted common share was $5.15 compared to $4.41 in the prior year quarterAdjusted after-tax income* (AATI) per diluted common share increased 24% to $1.30 from $1.05 in the prior year quarter, driven by a $373 million increase in General Insurance underwriting incomeRepurchased $1.4 billion of AIG common stock in the first quarter of 2022AIG Board of Directors increased the share repurchase authorization to $6.5 billion$9.1 billion of AIG Parent liquidity at March 31, 2022
  • J
    James
    somebody must have had forced to dump their position yesterday to raise money. still going to be a money generating machine because of rising insurance and interest rates.
  • J
    James
    companies and people still need ins. lower price means more shares bought back. higher interest means greater profits whats not to like.
  • J
    John
    Targeting 10% return on equity for AIG Remainco. Appears equity is roughly 40 billion so that means 4 Billion income(assuming my equity number is accurate). Was concerned how much of corporate cost would come over after split and they said 700 million yesterday. The debt reduction will save 290 million and they could get another 200 million in interest income due to higher rates so they come close to negating the additional cost. Chubb is trading at roughly 14 times earnings so if we give AIG a 12 multiple on 4 Billion that's a 48 Billion valuation for AIG remain. Assuming the 22 Billion valuation for Life and Retirement sticks Remainco is currently valued at 28 billion, not 48 Billion. They also have 6.5 Billion for buybacks apparently without considering the IPO proceeds which could be 3 Billion. Being aggressive that puts the value of AIG Remainco at 19 Billion when it should/could be 48 Billion. Using today's price and market cap that additional 30 Billion of market cap(48 Billion valuation less 19 Billion current value) is a 60% bump from the current price which gets you to $100.
  • J
    John
    Was concerned when earnings were released that the MAD CEDER CEO had lost his mind. He told us last Q they were going to save a bit of money CEDING this year versus last but the 1st Qtr numbers certainly didn't show it. I'm assuming he got a lot of negative feedback overnight and felt compelled to address it in the conference call stating that they CEDED more in the first quarter this year and will need to CEDE less in the subsequent quarters compared to last year. Believe the CEDE % for Q 1 was an amazing 42% vs 39% last year. Chubb cedes at 20% for the full year and I believe AIG was 32% for full year last year. That's roughly a 2.5 Billion hit to income. I hope some day he realizes that the company does not get any credit for his risk aversion as Chubb trades at a much higher multiple. One would think, since AIG's earnings are "safer" due to the excessive ceding they would trade at a higher multiple but they don't and it's not even close.
    And I don't believe they have a picture of their CEO on the investor relations website even though his stock price is up 50% in 5 years and AIG's hasn't budged in 5 years.
  • q
    queenie
    Well, thank G-d for AIG today while the rest of the market bleeds. $70 would be nice.
  • J
    John
    Wow- 7 BILLION of debt wiped from the books of remaining AIG. One would assume Blackstone new about the 8.3 billion L & R debt issuance when they gave their 2 billion for a 10% stake meaning the 22 billion valuation should stand. Now remainco AIG has increased its net worth by 7 billion(6.7 actually) which not only does that but should save them between 300 and 350 million of annual interest expense and it seems there should be 1 Billion+ left over to buy some more stock back. I thought they would use more of it to buy back stock but I'm ok with this use. So now that's 1.3 billion extra from the debt offering, 10.7 billion they already had, 2 billion in first half profit P & C and perhaps another 3 billion from the IPO. That's 17 billion and if you assume they want to hold 5 billion, there is 12 billion for buy backs on a currently valued 27 billion company. And again, that company's net worth is now 7 BILLION greater because of the debt reduction today.

    We're going to the moon Alice! Finally!
  • Y
    Yahoo Finance Insights
    American is up 5.01% to 62.51
  • J
    John
    Trying to figure out when stock tanked during CC and believe it was when they said net 2020 premium was going to be flat with 19 at 25 billion. AIG ceded 28% of their premiums in 2019 vs 22% in 2018 vs Chubbs 20% in 2019. That 8% difference between them and Chubb is worth 2.7 billion pre-tax, and we know AIG doesn't have to cash pay taxes for a while. The 5% move for them from 18 to 19 was 1.9 billion difference in net premium. Perplexed why/how they can reduce limits and increase deductibles and get huge price increases yoy BUT they still need to increase reinsurance ceded by 5% and do it at a rate 40% worse than Chubb. What kind of policies had they been writing in the past? Perhaps they should tell us occasionally what the Cat Losses would have been had they not reinsured. It's hard to fathom they would need to give up 2.6 billion to what Chubb is doing to protect against CAT losses. Again, what kind of risk were you taking in 2018 when you ceded 1.9 billion less in premium and your deductibles and limits were apparently 50% greater than in 2019. I guess another way to check the CAT loss protection out is to see what AIG's 2019 CAT losses were vs. Chubb's. What do we get for the 2.6 billion. I will check that and get back to you.
  • K
    Kaptain
    Baby Steps: I expected AIG to crush earnings, but the beat was only modest. I get the impression that running an insurance operation is like herding cats. Results from positive initiatives are so amorphous and slow. We are deep into Brian's second year and he's still struggling to recover the stock price that Peter left him with. I feel more relieved than grateful with this report.
  • J
    John
    Appear to be adding tremendous liquidity which should speed debt reduction(assuming debt is callable) and more importantly buybacks. Investment book in L & R was sold in July for 6.8 billion minimum(that was value of investments). Affordable housing will be sold in fourth quarter with 4 billion cash being sent to the parent. 2.2 billion dollars from Blackstone L & R 9.9% deal and then another 2 billion potential from the L & R IPO. Was hard to decipher but it appeared they were intimating on the call that the L & R IPO may go above another 9.9% which would mean more than 2 billion. That's almost 15 BILLION of liquidity excluding earnings. I've cited several times about how they are overcapitalized at both P&C and L&R so it makes sense they would sell investments for cash and then put that cash to work in some fashion.
    The value of P&C is now roughly 21 billion if you assume the Blackstone valuation of L & R at 22 billion is accurate. Where will they put the 15 BILLION to work? Could they do it all, except the 2 billion buyback in 21? That means 13 BILLION and that excludes earnings for the next two quarters with last quarter's earnings at 1.3 BILLION.
  • K
    Kaptain
    If you saw me climbing a tree for apples, and you saw the best fruit at arm's length from the ground, would you naturally ask me why I haven't bothered to pick that fruit too? What if my response was that, I'm just too busy climbing this tree, because " it's hard, but I'm really good at it"?

    Obviously the proverbial "low hanging fruit" are stock buybacks, the higher fruit are the harder and riskier underwriting selection and corporate reorganization. While I'd like to think they can do that too, it frustrates me to think they cannot free up a $billion or two per year to buy back stock at such a steep discount. Seriously? They are going to retire 4% debt, when the dividends alone saved on buybacks would be over 2.6%, and the instant tangible booked profit would be 16+%. That's not even counting the very real value in the other 30+% booked for DTAs and AOCI. Brian may know how to grow apples, but he sure doesn't know how to pick them.
  • C
    Clay
    AIG EARNINGS OUT - The company's adjusted after-tax income attributable to its common shareholder soared 57% to $1.3 billion. It earned $1.58 on a per-share basis, trouncing analysts' average estimate of $1.19 per share, according to IBES data from Refinitiv.
  • K
    Kaptain
    Looks like today is the end of the road for us warrant holders. Some ask why they still have any value at all? My guess is two reasons: Small traders often confuse the conversion of $42.23 per 1.067 shares (wrong) for the actual $42.23 per share ($45.07 per 1.067 shares). Larger traders are betting on cashing in, at least to some extent, on the class action lawsuit that is certain to happen. Brian's missteps, by paying too much for acquisitions with little impact, and foregoing all buybacks (hugely profitable) that weren't forced upon him, hurt the shareholders and killed the warrant holders, implicitly his most ardent supporters. This was not about Covid or cat losses. It was about Brian not measuring up operationally, and putting his ego ahead of all the stakeholders. Thank you, Brian!
  • K
    Kaptain
    The CC was surprisingly strong. The bottom line was ugly, no doubt. But they were surprisingly detailed and confident that they could achieve profitable underwriting and 8% ROE for 2019. I don't expect huge upside, but I do think our losses will moderate after the analysts have had time to weigh in. The buyback program was not as neglected as I thought either They might pick up another 40-50M shares during the year as well.
  • R
    ROLAND
    Regarding warrants, AIG can change the terms of the warrants. They may not do it as part of their game plan!!!

    WHEREAS, pursuant to the terms of Section 14 of the Warrant Agreement, the Company and the Holder have the power to amend and modify the terms of the Warrant Agreement.
  • J
    John
    Listened to call and can't imagine they won't extend the warrant expiration date(if necessary). They are hell bent on reducing debt, even more so now that they are splitting. Assuming our/my understanding of the warrant transaction is correct(meaning warrant holders pay 42.25 for each share). Also, I did a 5 year chart on Yahoo and for the majority of the time it's at 60, never mind 45. They could use Covid as justification for the extension and I'm not sure they need justification.

    Unfortunately and as usual the topic was not discussed.