How Does AIG’s Balance Sheet Look?
In 3Q16, AIG’s debt-to-total-capital ratio rose to 36% compared with 31% in 2Q15, which was mainly due to higher debt and share repurchases.
American International Group’s (AIG) stock has risen more than 14% and 31% over the past three and six months, respectively.
In 3Q16, AIG declared a quarterly dividend of $0.32 per share totaling $338 million, translating into an annualized dividend yield of 1.9%.
AIG has been focusing on its core insurance operations and monetizing its legacy assets.
American International Group’s (AIG) commercial insurance segment is garnering revenues from specialty insurance, property insurance, and trade insurance.
American International Group’s (AIG) consumer insurance is expected to see a strong performance in 4Q on retirement offerings and nominal growth in personal insurance.
In this series, we’ll study AIG’s expected performance, investment profitability, operating divisions, expansion, balance sheet, dividends, and valuations.
Prudential Financial (PRU) has maintained its dividend yields in the range of 2.0%–3.0% over the past few years. It has also more than doubled its stock.
In 3Q16, the company returned $930.0 million to shareholders in the form of dividends and buybacks.
Prudential Financial’s (PRU) International Insurance segment reported adjusted operating income of $780.0 million in 3Q16, compared to $812.0 million in 3Q15.
Prudential Financial (PRU) had a balance sheet capital capacity of $820.0 billion as of September 30, 2016. Its parent company’s cash and equivalents stood at $3.5 billion.
Prudential Financial’s (PRU) operating income for its US Individual Life and Group Insurance fell to $173.0 million in 3Q16, compared to $227.0 million in 3Q15.
Prudential Financial’s (PRU) US Retirement Solutions and Investment Management segment saw retirement gross deposits and sales of $12.3 billion in 3Q16.
On November 2, 2016, Prudential Financial (PRU) reported its 3Q16 earnings. Its adjusted operating income per share was $2.66, which was higher than estimates of $2.49.
AIG’s shares appear to be marginally undervalued due to a downward trend in the stock.
AIG expects annual savings of $400 million–$500 million through its restructuring initiatives, consisting mainly of employee severance and improvement of technology platforms.
AIG’s exposure to structured instruments such as collateralized loan obligations (or CLOs) and super senior corporate debt declined to zero compared with its $2.5 billion exposure on December 31, 2014.
AIG declared its quarterly dividend of $0.32 per share in 3Q16 totaling ~$338 million, translating into an annualized dividend yield of 2.2%.
AIG’s Commercial division reported a rise in catastrophic losses to $253 million compared to $88 million in 3Q15.
American International Group’s (AIG) Consumer Insurance division recorded a rise in pretax operating earnings in 3Q16. The division’s pretax operating income rose to ~$1.4 billion compared with ~$657 million in 3Q15.