53.75 0.00 (0.00%)
After hours: 5:06PM EDT
|Bid||53.80 x 1100|
|Ask||53.81 x 800|
|Day's Range||53.59 - 54.32|
|52 Week Range||36.16 - 57.59|
|Beta (3Y Monthly)||1.01|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 29, 2019 - Nov 4, 2019|
|Forward Dividend & Yield||1.28 (2.40%)|
|1y Target Est||59.69|
American International Group, Inc. announced today that Peter Zaffino, AIG’s Global Chief Operating Officer and Chief Executive Officer, General Insurance, will present at the KBW Insurance Conference on Wednesday, September 4, 2019 at 10:15 a.m.
American International Group, Inc. (AIG) today announced that Sabra Purtill will join the company in a newly established role as Deputy CFO, Head of Treasury, Investor & Rating Agency Relations, and Corporate Development, effective August 28. Ms. Purtill will be based in New York and report to Mark Lyons, AIG’s Executive Vice President and Chief Financial Officer. Sabra will oversee AIG’s engagement with key financial stakeholders, including ratings agencies and the investor community, in a coordinated and consistent way that supports business objectives.
General Electric (NYSE:GE) stock price plunged more than 11% yesterday after forensic accountant Harry Markopolos issued a report accusing the conglomerate of massive accounting fraud and predicted that it could go bankrupt soon. GE stock price is climbing 6.5% today but remains about 20% below its July 24 levels.Source: JPstock / Shutterstock.com Known for reporting Bernie Madoff's Ponzi scheme to the federal government years before Madoff was caught, Markopolos' has earned some credibility with The Street.Yet, for multiple reasons, including Markopolos' history and recent conduct, I'm very skeptical about his conclusions. For these reasons, I recommend that risk-tolerant investors buy General Electric stock on weakness.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Markopolos Can Make Money if the Street Believes His StoryAccording to CNBC, Markopolos said that a mid-sized, U.S.-based hedge fund had agreed to give him "a decent percentage of profits" that it would earn by betting on the decline of GE stock. * 10 Cheap Dividend Stocks to Load Up On Let's say that the hedge fund bet $100 million against GE stock, and that it, using put options, made $50 million on the trade. Let's say that Markopolos' percentage was 20%. He would then of course earn $10 million on the deal. That's a pretty high sum for putting together a report and appearing on a few TV shows.And, if Markopolos' report had not been negative enough to push GE stock price down, it appears he would earn nothing on the deal. So, I'd say calling him pretty biased when it comes to GE stock would be a huge understatement.My confidence in the accountant isn't increased by his refusal to name the hedge fund that's paying him or the exact percentage of their profit he's getting. And in my opinion his statement that his report was "self-funded" could make some people mistakenly believe that he has no profit motive in this case. As somebody who scathingly criticized GE for a lack of transparency, Markopolos' own lack of transparency is puzzling and disappointing. Markopolos' Past Prophecies Haven't Come TrueMarkopolos, of course, was spot on about Madoff, but his warnings about insurance companies haven't been nearly as prophetic. As CNBC noted, his case centers around GE's long-term care insurance unit.Interestingly, in an interview published by Business Insider in November 2016, Markopolos alleged that all sorts of fraud was rampant across the insurance sector."I have some large insurance fraud cases that I'm going to make public in 2017. And they're going to be in the tens of billions of dollars each. … Basically the insurance industry is where the banking industry was in 2007," he told Business Insider. But over two years later, I can't find any references to insurance fraud exposed by Markopolos. Does anybody else hear a wolf? America Doesn't Crack Down Hard on Illegal Conduct by CompaniesIn his report, Markopolos compared GE to two of the very few large American companies that collapsed due to illegal conduct: Enron and WorldCom.But the reality is that the vast majority of large firms that violate the law do survive, and many thrive. For example, American International Group (NYSE:AIG), Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) were charged with committing fraud during the financial crisis. Toshiba (OTCMKTS:TOSBF) had its own accounting scandal in 2015. They all managed to survive and thrive since then. More recently, Wells Fargo (NYSE:WFC) has admitted to various fraudulent actions. Multiple hospital-chain owners have admitted to Medicare fraud. None of them have gone out of business, either. So even if GE did commit fraud or break laws, the chances of it disappearing are pretty low. Most of GE's Problems Involve a SubsidiaryAs CNBC pointed out, most of Markopolos' allegations of insolvency and lack of liquidity relate to GE's long-term insurance business. He identifies Employers Reassurance Corporation as the source of much of the debt he says GE owes.But ERAC is a subsidiary of GE, rather than part of the company itself. Interestingly, earlier this year, another GE subsidiary, sub-prime lender WMC Mortgage, went bankrupt. Although I'm not a legal or financial expert, I do think it's fair to wonder why GE cannot get rid of most of its debt stemming from ERAC by simply having the unit declare bankruptcy. Apparently, bankruptcies by insurers are not unheard of or illegal. Why Would Culp Join a Corrupt Company?General Electric CEO Larry Culp is in an altogether different situation than the CEOs of Enron and WorldCom were. In the latter two cases, the long-time heads of the companies were involved in fraud for years.Culp, by contrast, just joined GE at the end of last year. At that point, Markopolos alleges that GE had already started their fraudulent practices. By all accounts, Culp was tremendously respected for the turnaround he engineered while he was CEO of Danaher (NYSE:DHR).If Markopolos' accusations are true, Culp either did not examine GE's financial situation prior to taking the job, didn't understand its financial situation or knew that it was about to crash but, for some reason, didn't care about wrecking his sterling managerial reputation. None of those scenarios seems very likely. General Electric Stock's Fundamentals Are StrengtheningDespite the bears' insistence that GE stock is doomed and its fundamentals are collapsing, there are concrete signs that the company's fundamentals are improving or are poised to improve.The oracle of the GE stock bears, JPMorgan analyst Stephen Tusa, reported that GE's second quarter was an operational miss and that the company's fundamentals had worsened.But, as I pointed out in a previous column, the gas power segment of GE's Power unit jumped 27% in the first half of the year, and the company's overall backlog jumped 11% year-over-year. Culp reported that GE Power would benefit from positive trends going forward, including strong demand for natural gas in Asia. Moreover, despite temporary problems, the company's Aviation unit received a record $55 billion of orders at the Paris Air Show in June.Meanwhile, Greentech reported earlier this month that U.S. wind energy development accelerated in the second quarter, which should boost GE's renewable energy unit. Additionally, New York and New Jersey are going all-in on offshore wind, which also bodes well for GE.Finally, Caterpillar (NYSE:CAT) reported that the orders of its power business surged 17% year-over-year. Woodward (NASDAQ:WWD), which sells parts to GE, said that its gas turbine business is improving. And Barclays analysts reported that U.S. power turbine orders jumped more than 12% year-over-year.Based on all of those numbers and fundamental catalysts, I really can't see how Tusa can state with confidence that GE's fundamentals are worse. I also am not very confident at all about Markopolos' charges, so I would recommend buying GE stock on weakness.As of this writing, Larry Ramer was long GE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Dividend Stocks to Load Up On * The 10 Biggest Losers from Q2 Earnings * 5 Dependable Dividend Stocks to Buy The post Investors Should Buy General Electric Stock on Its Latest Decline appeared first on InvestorPlace.
Activision Blizzard Inc. has a new chief people officer. The Santa Monica, California, game company has appointed Claudine Naughton to the role, succeeding Brian Stolz, who will assume a newly created role as senior advisor. In her new post, Naughton will lead global human resources for the company behind such franchises as “Call of Duty,” “Candy Crush,” “Hearthstone,” “Overwatch” and “World of Warcraft.” She will be based in Santa Monica and report to Activision Blizzard (NASDAQ: ATVI) CEO Bobby Kotick.
American International Group, Inc. (AIG) today announced that Richard Olsen will join the company as Chief Actuary, General Insurance, effective immediately. Mr. Olsen will be based in New York and will report to Mark Lyons, Executive Vice President & Chief Financial Offer, AIG. Mr. Olsen will lead the General Insurance global actuarial organization, with responsibility for aligning pricing, portfolio and reserving practices with AIG’s business objective of improving underwriting profitability, as well as providing guidance on portfolio optimization to help inform General Insurance strategy.
(Bloomberg) -- American International Group Inc. climbed after scoring an underwriting profit for a second straight quarter, a key goal for Chief Executive Officer Brian Duperreault in his effort to strengthen the insurer. It’s now concentrating on another phase of its turnaround plan.“Given the progress we have made, we are now placing greater focus on a multiyear, enterprise-wide program,” Duperreault said Thursday on an earnings call. “The one thing we’ve never been noted for is operational excellence. And this is the one thing that we have not invested in. We’ve got legacy processes, too many manual interventions, on and on and on. It is a drag on our performance.”Duperreault has sought to fix the company’s large property-casualty insurance business, which faced pressure over the years with higher-than-expected losses. The unit is on track to report an underwriting profit for the full year, he said, a sign of improving stability. For the next phase, the company will work to modernize all of AIG’s businesses and workflows, a move that’s “critical,” said Chief Operating Officer Peter Zaffino, who leads property-casualty operations.AIG shares climbed 4.4% to $56.78 at 10:15 a.m. in New York, their biggest gain in intraday trading in three months. The company on Wednesday reported second-quarter earnings of $1.43 a share, beating the highest estimate among 17 analysts in a Bloomberg survey.“This was the second consecutive quarter of better-than-anticipated results for AIG with particular signs of progress evident in the core general insurance segment,” Mark Dwelle, an analyst with RBC Capital Markets, said in a note to clients Wednesday. “We viewed the accident year loss ratio improvement in general insurance as encouraging and didn’t have the large losses or big cat events that have plagued the company for years,” he said, referring to major catastrophes.With the insurer marking its 100th anniversary, it’s branding its modernization plan as AIG 200 “to look forward to the next 100,” Duperreault said.Also in AIG’s second-quarter earnings:Net investment income surged 19% to $3.7 billion on rising equity markets and a $142 million gain from the initial public offering of a holding in the private equity portfolio. AIG didn’t identify the company in its statement Wednesday.The life and retirement businesses posted profit above $1 billion for the first time since the third quarter of 2017. The operations, coping with negative net flows, benefited from demand for fixed and indexed annuities and “strong” returns on private equity bets.Mother Nature stung just slightly in the second quarter. Losses tied primarily to North American catastrophes totaled $174 million, net of reinsurance. AIG wasn’t alone: Travelers Cos. broke a streak of beating analyst estimates in the second quarter amid weather losses.What Bloomberg Intelligence Says“AIG’s results support our view that the company will post a P&C underwriting profit for 2019 and that management’s turnaround strategy is working.”--Matthew Palazola, insurance analystClick here to read the research.To contact the reporter on this story: Katherine Chiglinsky in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Daniel Taub, Steve DicksonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Business risk is rising around the world amid global trade tensions and currency wars. And advisory and risk management firm Aon is a beneficiary of it all.
American International's (AIG) second-quarter results reflect gains in its General Insurance and Life and Retirement segments and increase in investment income.
A strong performance in commercial and personal insurance in regions outside of North America helped the insurer post an underwriting profit of $147 million in its general insurance business compared with a loss of $89 million a year earlier. The general insurance business reported its first underwriting profit last quarter since 2007, when it was hit by the financial crisis. Chief Executive Officer Brian Duperreault took the helm of AIG in 2017, promising to return the company to its glory days and make the company's general insurance business profitable again.
Insurer American International Group Inc beat Wall Street estimates for quarterly profit on Wednesday, boosted by improved underwriting in general insurance business and higher investment income, sending its shares up 3% in extended trading. A strong performance in commercial and personal insurance in regions outside of North America helped the insurer post an underwriting profit of $147 million in its general insurance business compared with a loss of $89 million a year earlier. The general insurance business reported its first underwriting profit last quarter since 2007, when it was hit by the financial crisis.
NEW YORK-- -- Net income attributable to AIG common shareholders was $1.1 billion, or $1.24 per diluted common share, for the second quarter of 2019, compared to net income attributable to AIG common shareholders of $937 million, or $1.02 per diluted common share, in the prior-year quarter. Adjusted after-tax income attributable to AIG common shareholders was $1.3 billion, or $1.43 per diluted common ...
American International Group, Inc. (AIG) today announced that its Board of Directors declared a quarterly cash dividend of $0.32 per share on AIG Common Stock, par value $2.50 per share. Holders of depositary shares will receive $0.365625 per depositary share. The common stock dividend will result in an adjustment to the exercise price of the outstanding Warrants (CUSIP number 026874156) and an adjustment to the number of shares of AIG Common Stock receivable upon Warrant exercise.
U.S. stock index futures moved lower ahead of trading on Wednesday after rising trade tensions led to concerns that a global economic slowdown was likely.
American International (AIG) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.