"NEW YORK (TheStreet) -- American International Group (AIG - Get Report) more than doubled its quarterly dividend and announced a $5 billion stock-buyback plan after posting higher second-quarter profit than analysts estimated.
Earnings of $1.32 a share topped the average estimate in a Bloomberg survey by 13%. Net income of $1.8 billion still fell 42% from a year earlier, the New York-based company said in a statement, after losses on debt extinguishment and lower capital gains on investment sales. Earnings in the second quarter of 2014 were boosted by the sale of its aircraft-leasing business, International Lease Finance, to AerCap.
Shares, which had dipped in anticipation of Monday's report, picked up in after-market trading following the announcement of the quarterly dividend increase, to 28 cents a share, and the buyback, which brings the total authorization for share repurchases to $6.3 billion.
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AIG's strong quarter comes amid a fairly buoyant year, with shares up more than 14% year-to-date. The company bought back more than $2.3 billion in shares in the second quarter and an additional $965 million through the end of July, according to the statement
"We're taking action today to create long-term value for tomorrow," AIG CEO Peter Hancock said in the statement. "We continued to proactively manage our capital resources through both common stock and debt repurchases." Hancock became CEO on Sept. 1 after the retirement of Robert Benmosche, who revived the company in the wake of the financial crisis, when it was forced to take a $182 billion government bailout. Benmosche had been undergoing treatment for lung cancer since 2010 and died earlier this year.
"American International Group Inc. AIG, -0.16% reported quarterly earnings Monday that were far better than analysts expected, and announced plans to buy back more shares. The insurer announced net income of $1.8B, or $1.32 a share, on revenue of $15.7 billion; after adjustments, profits reached $1.39 a share. Analysts surveyed by FactSet had expected AIG to report adjusted earnings of $1.22 a share on revenue of $14.9 billion. The company also detailed an increase in share buybacks, adding $5 billion to a current stock-repurchase plan. AIG stock wavered between slight gains and losses in late trading after adding 2 cents in the regular session to $64.14"
ENH-Endurance Specialty Holdings Ltd. is a global specialty provider of property and casualty insurance and reinsurance. Through its operating subsidiaries, Endurance writes agriculture, professional lines, property, marine and energy, and casualty and other specialty lines of insurance and catastrophe, property, casualty, professional lines and specialty lines of reinsurance. We maintain excellent financial strength as evidenced by the ratings of A (Excellent) from A.M. Best (XV size category) and A (Strong) from Standard and Poor`s on our principal operating subsidiaries. Endurance`s headquarters are located at Waterloo House, 100 Pitts Bay Road, Pembroke HM 08, Bermuda and its mailing address is Endurance Specialty Holdings Ltd., Suite No. 784, No. 48 Par-la-Ville Road, Hamilton HM 11, Bermuda. For more information about Endurance, please visit www.endurance.bm.
IRA #3 -- 7/22, Bought 2.4% position in GSK at 42.18/share. Today sold the Nov 45 call options which effectively lowers my per share cost to 41.58/share.
IRA #1, now has a cost basis net of options of 41.76/share. Purchased 6/8/15.
Hillary Clinton Futures Trades Detailed
By Charles R. Babcock
Washington Post Staff Writer
Friday, May 27, 1994; Page A01
"Hillary Rodham Clinton was allowed to order 10 cattle futures contracts, normally a $12,000 investment, in her first commodity trade in 1978 although she had only $1,000 in her account at the time, according to trade records the White House released yesterday.
The computerized records of her trades, which the White House obtained from the Chicago Mercantile Exchange, show for the first time how she was able to turn her initial investment into $6,300 overnight. In about 10 months of trading, she made nearly $100,000, relying heavily on advice from her friend James B. Blair, an experienced futures trader.
The new records also raise the possibility that some of her profits -- as much as $40,000 – came from larger trades ordered by someone else and then shifted to her account, Leo Melamed, a former chairman of the Merc who reviewed the records for the White House, said in an interview. He said the discrepancies in Clinton's records also could have been caused by human error.
Even allocated trades would not necessarily have benefited Clinton, Melamed added. "I have no reason to change my original assessment. Mrs. Clinton violated no rules in the course of her transactions," he said.
Lisa Caputo, Clinton's spokeswoman, said the documents were released yesterday "to give as complete a picture as possible" of her trades. She said Clinton had never before seen them.
Blair, who urged Clinton to enter the high-risk futures market and ordered most of her trades, said in a recent interview that he "talked her into" her first futures trade in October 1978 before paperwork on her account was completed. It was liquidated quickly, he recalled, because "it was bigger than she wanted and required more money."
IRA upped its position from .4% to 1.44% today in COP at 52.25/share. The dividend yield is 5.66%.
Thankfully I'm out of cash until August options expire in 4 weeks. How low does COP go?
I'm not that confident. I was surprised when they raised their dividend one cent this quarter. I don't mind cheap fuel since I'm a consumer.
Lots of money to be made shorting my stocks this year at least.
But shorting stocks that yield over 5% can get expensive.
Personally I like to own oil going into hop picking which starts next month If you saw our fuel bill you'd know why.
"second-quarter net income of $1.2 billion or $1.38 per share, down 8 percent from $1.3 billion or $1.43 per share a year earlier."
Down under 95 again.
UA earned $.07/share and is up $8 to over 97. Go figure.
OK-It's all part of our insurance division's assets-- Investments in equity securities were $115 billion at the end of 2014.
IBM is part of our BRK float, thus we sell insurance against it and collect premiums which eventually work out to profits. Buying back BRK also means less capital and selling less insurance. HC, you cant have it both ways.
Buffett knows what's up.