Measuring AIG Going Forward

Over the past number of conference calls management has emphasized debt reduction and interest coverage as the highest priority near term. They are focused on cost reductions, interest expense reductions and improving the interest coverage ratio. “As the year progresses, we will then begin to look at things like could we add a dividend to the […]

American International Group (AIG) 4Q12 Results: What a Year

American International Group (AIG) reported 4Q12 earnings on February 21, 2013 [Source]; the results beat Wall Street expectations although the company did not meet all of its performance targets. However, it was an outstanding year showing progress on many fronts and demonstrating the earnings power that will provide shareholder returns for years to come. Bob Benmosche, […]

AIG Announces Sale of AIA Group Limited

NEW YORK–(BUSINESS WIRE)–Dec. 16, 2012– American International Group, Inc. (NYSE: AIG) announced today that it has commenced a sale in Hong Kong of up to all of its ordinary shares of AIA Group Limited (AIA) by means of a placing to certain institutional investors. AIG expects to use the net proceeds from the placing of […]

Treasury Exits AIG; Valuation Update

The U.S. Department of the Treasury announced that it is offering all of its remaining 234 million AIG shares for sale at $32.50/share for a total $7.6 billion. The offering is expected to be completed on Friday. This sale ends government ownership and combined with the recently announced International Lease Finance Corporation (ILFC) sale will eliminate the remaining major […]

American International Group (AIG) Announces Sale of ILFC

Well, that was fast; talks reported Friday 12/7 agreement announced Sunday 12/9. First the announcement in part: AIG Announces Agreement to Sell up to 90 Percent of International Lease Finance Corporation (ILFC): ILFC Headquarters to Remain in Los Angeles; Existing Management to Operate ILFC NEW YORK–(BUSINESS WIRE)–Dec. 9, 2012– American International Group, Inc. (NYSE: AIG) and […]

Three Positives at American International Group (AIG)

Last week we had three good pieces of news concerning our AIG investment: 1) International Lease Finance Corporation (ILFC) sale discussions underway; 2) The impact of Hurricane Sandy on AIG is very manageable; and 3) Woodbury Financial Services acquisition is completed. International Lease Finance Corporation (ILFC) Sale Discussions Underway: On 12/7/12 Bloomberg reported that a Chinese […]

American International Group (AIG) Reports 3Q12 Results

American International Group (AIG) reported 3Q12 earnings on November 1, 2012. It was a solid report but near term changes in AIG’s regulatory status and insurance operations may be causing undue concern for some. Beyond the noise our investment thesis remains on track and our margin of safety has improved. The share price dropped after the […]

American International Group (AIG) Update

Since the August 3 post on AIG a lot has been accomplished:     The U.S. Treasury conducted two sales of AIG common stock reducing government ownership to 242 million shares or about 16%, down from 92% at its peak. AIG purchased $8 billion of these shares (252 million shares) bringing the year to date […]

American International Group (AIG) Reports 2Q12

American International Group (AIG) reported 2Q12 earnings after the market close 8/2/12 and held their conference call on 8/3/12. It is an excellent report and our investment thesis remains on track and is ahead of schedule. You will recall our investment thesis is centered on the recapitalization of the company since the financial and credit […]

Continued Good news on AIG

On May 4 The Federal Reserve Bank of NY (FRBNY) announced it is seeking bids for additional Maiden Lane III assets, called Triaxx CDOs, in response to inquiries from interested buyers. Nine broker-dealers were invited to compete for the Triaxx CDOs held within the Maiden Lane III portfolio according to a statement on the FRBNY website. […]