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American International Group, Inc. (AIG)

NYSE - NYSE Delayed Price. Currency in USD
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56.69-0.60 (-1.05%)
At close: 04:00PM EDT
56.63 -0.06 (-0.11%)
After hours: 07:58PM EDT
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  • B
    Billy
    Other insurers have posted great results, especially P&C insurers. the short duration of a P&C policy is helping. Expect great results this quarter of course it's IAG so there is always some "one time" charges to offset any great operations/execution. Cash is king and they're discount to book and movement toward better quality policies/segments mean they'll deserve a better multiple. takes time to develop the market sentiment.
  • J
    John
    IPO underwriters chosen(3). Have to believe that means the rest of the IPO process has passed SEC muster. Said on call there next window is September, hopefully the selection of underwriters means early September.
    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.
  • l
    lynah
    AIG looks like it is about to drop. Be careful guys. I have been reading (http://Achieverspot.tech) and their stocks have been doing way better.
  • R
    Richy
    3.50 PT
    Bearish
  • J
    John
    Last amendment(#3) to IPO filed 6/13, almost one month ago. Unless SEC is woefully understaffed or just simply way behind on things one would hope/think they could respond to an amendment within 30 days since they obviously suggested to the company that something was not sufficient with the initial filing and 2 subsequent amendments. In other words, it should only be Amendment 3 that the SEC needs to review and that should not take a freaking month to do. They, (AIG/Corebridge) should be telling us the SEC has approved the filing and they are just waiting for market conditions to improve or they should have filed amendment 4 by this time. Especially since they told us this should be done by end of Q2. They OWE us an explanation.
  • R
    Richy
    Lolol
  • j
    josh
    American International Group (AIG) reported Q2 adjusted after-tax earnings of $1.19 per diluted share, down from $1.52 per share a year earlier.

    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.
  • J
    John
    Not that it matters at this point but they actually don't NEED any cash from the IPO. They have a massive amount of liquidity and AIG remainco has a fabulous balance sheet after they did the debt swap with the L & R spinout. I believe they were holding back on the 6.5 billion buy back until after the separation(they were doing only 1 billion of it in Q2). I wrote them and suggested they do a direct listing or whatever it's called whey a company lists without raising capital. They can then sell the shares and raise their 3 billion when the market calms down but in the meantime use the incredibly low valuation of remainco to buy back the remaining 5.5 billion. Since they should have earned another billion in Q2 perhaps they can still do 6.5 billion.
  • H
    Henry
    Senior management is flying this company into a mountain.
  • B
    Ben
    Any updates on the separation?
  • D
    DoublinDown
    Great buy point right here. AIG undervalued to every comp within its industry
  • 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?
  • 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
    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.
    Bullish
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