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Their capital % at remainco is close to 500%, the highest number I've ever heard on their calls. They talked about going as low as 600 million shares which is another 170 million from here and at current share price about $10 Billion of additional buyback. Assuming they get 3 billion from the IPO they can do a large buyback right of the back. They may need/want to do an accelerated buyback.
A 10 Billion buyback puts the valuation of remainco at 10 Billion when they should have 4 billion of earnings power. Sounds cheap.
Analysts polled by Capital IQ estimated $1.13 per share.
Net investment income for the quarter ended June 30 totaled $2.6 billion, down from $3.68 billion a year earlier.
The board maintained a quarterly dividend of $0.32 per share, payable on Sept. 30 to stockholders of record on Sept. 16.
AIG also repurchased roughly 30 million shares of common stock in Q2 for aggregate price of $1.7 billion.
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?
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.
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.