Author Topic: AIG - American International Group  (Read 615078 times)

Sullivcd

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Re: AIG - American International Group
« Reply #1970 on: November 04, 2017, 06:46:30 AM »
The new CEO was signaling this is the end but that is left to be seen. With bvps at 74.10 this is only overvalued if another reserve addition or big cat reduces bvps significantly. If the new CEO does what he is promising, this stock will shoot up to a bvps premium. I'm not convinced either way yet, too early to tell.


zippy1

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Re: AIG - American International Group
« Reply #1971 on: January 22, 2018, 05:20:14 AM »
[urlhttps://www.wsj.com/articles/aig-strikes-5-56b-deal-to-acquire-a-bermuda-insurer-1516622329?mod=yahoo_hs&yptr=yahoo][/url]
Quote
The global insurance conglomerate said Monday it signed a definitive agreement to acquire Validus Holdings Ltd. VR 1.76% in an all-cash deal. AIG said the acquisition would immediately add to its earnings.

Reinsurance is an arrangement in which insurers take on the risk of policies that primary insurers sell to businesses and individuals. A big product line for Validus is property-catastrophe reinsurance for hurricanes and other disasters.

The company also has other operations, including a Lloyd’s syndicate, crop insurance, and a unit that insures small U.S. companies. They overlap minimally with existing businesses at AIG, a leader in insuring multinational corporations and other large businesses and a large U.S. life insurer..

At $68 a share, the deal represents a 46% premium to Validus’s closing share price Friday,  and a 16% premium to its 52-week high.

Sullivcd

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Re: AIG - American International Group
« Reply #1972 on: January 22, 2018, 07:34:22 AM »
They are using cash to buy a reinsurer at a 58% premium to book value and 50% premium to share price when they are trading at a discount to book value of close to 20%.  Genius

Spekulatius

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Re: AIG - American International Group
« Reply #1973 on: January 22, 2018, 08:46:57 AM »
Sold AIG. Not worth holding. I am overweighted insurers anyways, having recently added significantly to AXS, RE and AHL. At least the former two are not run by complete morons.
To be a realist, one has to believe in miracles.

Sullivcd

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Re: AIG - American International Group
« Reply #1974 on: January 24, 2018, 06:56:18 AM »
https://www.insurancejournal.com/news/national/2018/01/23/478068.htm

"Validus, which had a market value of about $3.71 billion on Friday, provides protection for primary insurance companies that focuses on catastrophe, marine and specialty reinsurance, according to the statement. The company was formed in the wake of Hurricane Katrina with backing from a private equity firm run by Jeff Greenberg, the son of Maurice “Hank” Greenberg who ran AIG for decades before stepping down in 2005."

zhengmit

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Re: AIG - American International Group
« Reply #1975 on: May 07, 2018, 06:21:47 AM »
Not sure if everybody still follows the story.  I thought warrant might double from current level.  Has anybody looked at Berkshire disclosure?  What are initial deferred charge assets? How to think about adding $1.8bn reserves from Berkshire side?  I looked at Morgan Stanley's notes on it and thought he is simply wrong.  Any expert opinion?

fareastwarriors

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Re: AIG - American International Group
« Reply #1976 on: September 12, 2018, 01:40:36 PM »

plato1976

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Re: AIG - American International Group
« Reply #1977 on: October 13, 2018, 09:52:41 PM »
why is this one still dropping everyday even as the rate climbs up?
Changing CEO seems not working immediately --- the warrants will expire in 2 years and are approaching the worthless level

Spekulatius

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Re: AIG - American International Group
« Reply #1978 on: October 14, 2018, 07:24:36 AM »
The latest drop is probably due to the recent hurricanes, other re-insurance companies are down too. I own quite a bit of AXS and RE in addition to Fairfax and BRK. I sold AIG after they announced an acquisition at a multiple above book (1.3x ? I don’t remember) while trading below tangible book. At that point, I new my thesis was broken. That was around $60/ share. Below $50, this gets interesting again, but I think I rather stick with adding to my existing holdings in the same sector.
To be a realist, one has to believe in miracles.

Sullivcd

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Re: AIG - American International Group
« Reply #1979 on: October 18, 2018, 06:07:09 PM »
Validus synergies really starting to kick in. These guys are literally the worst