Allstate Corp (The)

AIG declared its quarterly dividend of $0.32 per share in 3Q16 totaling ~$338 million, translating into an annualized dividend yield of 2.2%.

Though policymakers have clearly stated that they’d be data-driven while deciding on effecting a rate hike, it seems that there’s more than economic indicators on their mind.

Some participants had maintained that the Fed shouldn’t raise rates in September, but many participants thought that the Fed would “liftoff” at this meeting.

In 1Q17, AIG repurchased ~56.0 million shares, or 5.5% of its total outstanding shares, for a purchase price of ~$3.6 billion. The company made additional repurchases of ~$1.1 billion through May 3, 2017.

During the first quarter of 2015, AIG (AIG) took further actions to simplify its balance sheet and reduce risk.

Berkshire Hathaway’s (BRK-B) services and retailing division is expected to garner marginal growth in 4Q16, sequentially as well as YoY.

Most members of the FOMC want to move cautiously in regards to rate hikes. They expect the factors that are holding down growth to only give way slowly.

The health care sector rose 0.65% on November 29. Alexion Pharm (ALXN) (+5.2%) and Centene (CNC) (+3.9%) are the top performers.

In American International Group’s (AIG) General Insurance segment, North American net premiums fell between 2016 and 2017, from $13.9 billion to $11.4 billion.

American International Group’s (AIG) stock has declined by more than 13% over the past six months, mainly due to weak operating performance, higher reserve developments, and declining returns on alternative investments.

AIG’s top line dipped marginally in 4Q14 when compared to 4Q13, driven by disciplined sales and underwriting in casualty products in commercial P&C.

AIG repurchased $6.5 billion of high coupon debt, replacing it with lower coupon debt to help AIG reduce its interest burden by ~$249 million per year.

AIG (AIG) reported pre-tax operating income of $1.5 billion in 1Q15 for its commercial insurance business, as compared to $1.4 billion in 1Q14.

Progressive’s (PGR) Commercial Lines business revenues increased by 12.1% to $511 million in 3Q15, up from $456 million in 3Q14.

Chubb has been successful in gaining investors’ confidence as the company rewarded shareholders with $667 million in 2Q17 via repurchases and dividends.

AIG’s shares appear to be currently undervalued despite the improvements in its operating and financial metrics.

In 3Q16, Berkshire’s (BRK-B) revenues from its Services and Retailing division fell to $6.3 billion in 3Q16 as compared to $6.1 billion in 3Q15.

Prudential Financial’s shares appear to be currently undervalued despite the improvements in its overall fundamentals.

AIG (AIG) reported a net loss of $6.66 billion in 4Q17—compared to a loss of $3 billion in 4Q16.

In 2013, the top ten life and health insurance companies had just above 50% market share in terms of direct premiums written.

An underwriting loss is not unusual for an insurance company. In a soft pricing environment, pricing of P&C products is low due to intense competition.

As customers use Internet-based aggregators to purchase insurance policies, insurers use online sales to interact directly with customers and reduce costs.

Insurance premiums have grown at a modest pace after a dip in 2009 due to the financial crisis, which the industry was able to navigate.

Policyholder liabilities, or policyholder reserves, represent the future claims that may arise for the pool of policies the insurer writes.

Goldman Sachs (GS) has cut its Q4 growth forecast by 20 basis points. It now foresees the trade war impacting growth more than it previously forecast.

Chubb (CB) is tracked by 18 analysts in February 2018. One analyst has recommended a “sell” for the stock, and one has recommended a “hold.”

Chubb’s (CB) PE (price-to-earnings) ratio is 14.37x on an NTM (next 12-month) basis. The average for its competitors was 13.36x.

Chubb’s (CB) net income in 4Q17 was $1.5 billion compared to $1.6 billion in 4Q16. It saw a rise in net premiums earned, from $7.1 billion in 4Q16 to $7.2 billion in 4Q17.

Chubb (CB) has reported 4Q17 EPS of $3.17, which exceeds analysts’ estimate by $0.88. The company’s core operating income in 4Q17 was $1.48 billion.

Of the 17 analysts covering MET, six have given it “strong buy” recommendations, seven have given it “hold” recommendations, one has given it a “sell” recommendation, and three have given it “buy” recommendations.

MetLife’s (MET) corporate and other division posted operating earnings of -$522 million in the first nine months of 2017.

MetLife’s (MET) holdings division saw a substantial rise in its operating earnings from $500 million in the first nine months of 2016 to $1.0 billion in the first nine months of 2017.

MetLife’s (MET) EMEA (Europe, the Middle East, and Africa) division generated total operating revenue of $2.10 billion in the first nine months of 2017.

MetLife’s (MET) Latin America division saw a rise in its total operating revenue from $3.5 billion in the first nine months of 2016 to $3.7 billion in the first nine months of 2017.

MetLife’s (MET) Asia division posted total operating revenue of $8.4 billion in the first nine months of 2017 compared to $8.3 billion in the first nine months of 2016.

MetLife’s EMEA (Europe, the Middle East, and Africa) division is expected to see a rise of 5%–6% in the current year because of its departure from the UK retirement market.

MetLife’s (MET) property and casualty (or P&C) business is expected to show an upward trend in 2018.

MetLife has made an attempt to streamline its customer experience by announcing two InsurTech investment programs: MetLife Digital Accelerator and MetLife Digital Ventures.

Wall Street analysts have given a consensus estimate of $15.4 billion for MetLife’s 4Q17 revenue, which reflects a fall on a YoY (year-over-year) basis.

Berkshire Hathaway (BRK.B) reported losses before tax of $963 million in 3Q17 compared to earnings before taxes of $1.4 billion in the corresponding period last year.

Discounted valuation American International Group (AIG) has a one-year forward price-to-earnings ratio of 20.4x, whereas its peers’ average ratio is 21.0x. National General Holdings (NGHC), Allstate (ALL), and Arch Capital Group (ACGL) have ratios of 18.8x, 15.1x, and 29.2x, respectively. AIG’s lower valuation is mainly due its significant catastrophe losses of $3 billion in 3Q17 and its […]

Higher losses American International Group’s (AIG) personal insurance division saw catastrophe losses of $297 million in 3Q17, compared with $27 million in 3Q16. The substantial rise in losses was mainly due to windstorm and hailstorm losses, which stood at $206 million in 3Q17 and $26 million in 3Q16. Over the last 12 months, AIG has had a […]

Net investment income and premiums American International Group’s (AIG) group retirement division saw its premiums fall marginally to $8 million in 3Q17 from $9 million in 3Q16. The division’s net investment income fell 5% from $554 million in 3Q16 to $524 million in 3Q17. This fall was mainly due to lower income from alternative investments. Whereas AIG […]

Assets under administration and premiums American International Group’s (AIG) individual retirement business saw its premiums fall 41% to $22 million in 3Q17 from $37 million in 3Q16. In 3Q17, the division’s assets under administration stood at $147.8 billion, due to positive equity markets and a favorable net flow related to index annuities. Whereas AIG has an enterprise value […]

Marginal fall American International Group’s (AIG) consumer insurance division’s total operating revenue fell 1% from $6 billion in 3Q16 to $5.9 billion in 3Q17. The marginal fall was mainly due to lower net investment income and premiums. The division’s premiums fell 2% to $3.2 billion in 3Q17 from $3.3 billion in 3Q16. Whereas AIG has a beta of […]

Total operating revenue In 3Q17, American International Group’s (AIG) commercial insurance division’s total operating revenue comprised net investment income and premiums. In 3Q17, AIG’s commercial insurance division’s total operating revenue fell to $4.6 billion from $5.4 billion in 3Q16, a 15% fall. This fall was mainly due to premiums falling 15%, from $4.5 billion in 3Q16 […]

Total expenses rise American International Group’s (AIG) total benefits, losses, and expenses rose a substantial 20% from $12.1 billion in 3Q16 to $14.6 billion in 3Q17. This rise was mainly due to policyholder benefits and losses rising. In 3Q17, AIG incurred policyholder benefits and losses of $10.3 billion, compared with $7.5 billion in 3Q16, a […]

Chubb’s North America Agricultural Insurance division generated underwriting income of $116.0 million in 1H17 compared to $67.0 million in 1H16, which implies an increase of 73.1%.

In 1H17, Chubb Limited’s (CB) Life Insurance business reported income of $114.0 million in 1H17 compared to $134.0 million in 1H16, reflecting a 14.9% decline.

Chubb’s Overseas General Insurance Division generates the majority of its net premiums written from Latin America, Europe, and Asia.

Chubb Limited’s (CB) Personal Property and Casualty business’s underwriting income rose from $138.0 million in 1H16 to $285.0 million in 1H17, reflecting an increase of 106.5%.

Chubb Limited (CB) reported net investment income of ~$1.5 billion in 1H17 compared to ~$1.4 billion in 1H16, reflecting a 9.6% increase. CB generated an 11% return on equity on a trailing-12-month basis.

Brian Duperreault, chief executive officer of American International Group (AIG), has taken a major step by reshuffling the company into three units.

American International Group (AIG) is expected to announce its earnings for 3Q17 on November 2, 2017. Wall Street analysts have provided a high estimate of $0.90 for AIG’s 3Q17 EPS.

Berkshire Hathaway (BRK.B) saw subdued profits in its Insurance segment in 2Q17, mainly due to higher claims. The trend is set to get stronger in the second half of 2017

In 2017, MetLife (MET) is expected to declare a total dividend of $1.61 per share, representing an increase of 1.9% from the total dividend it declared in 2016.

US insurance giants (IYF) are expected to witness costs in the range of $20 billion–$65 billion stemming from the effects Hurricane Irma.

As of December 31, 2016, Chubb (CB) had total assets totaling $159.7 billion, compared with its total assets of $162.9 billion as of June 30, 2017.

From January 2016–June 2016, AIG managed to report total operating revenues of $10.8 billion—a 15% YoY fall, primarily due to lower premiums in 1H17.

Wall Street analysts have given a one-year price target of $157.53 on Chubb (CB), an increase of 11.4% from the current price level.

Chubb’s (CB) life insurance division has posted net premiums written of $523 million in 2Q17 as compared to $527 million in 2Q16.

Chubb’s (CB) Overseas General Insurance division saw a decline in its net premiums written in 2Q17 from $2.01 billion as compared to $2.03 billion in 2Q16.

Chubb’s (CB) global reinsurance division has witnessed a substantial fall in its net premiums written in 2Q17 as compared to 2Q16.

Chubb’s (CB) North America Agricultural Insurance division witnessed a rise of 7.7% in its net premiums written in 2Q17 as compared to 2Q16.

Chubb Limited (CB) has witnessed a rise of 2.0% in its net premiums written in 2Q17 as compared to 2Q16.

Chubb’s (CB) North America Commercial Property and Casualty Insurance division witnessed a marginal fall in its net premiums written in 2Q17 as compared to 2Q16.

Chubb (CB) reported earnings per share (or EPS) of $2.50 in 2Q17, which beat Wall Street analyst estimates of $2.47.

Wall Street analysts recommended a one-year price target of $116.07 per share on Prudential Financial (PRU), reflecting an increase of ~14.1% from the current price.

In 2016, Prudential Financial (PRU) declared total dividends of $2.80 per share. In 2017, the company is expected to declare total dividends of $3.06 per share.

Prudential Financial’s (PRU) Life Planner division experienced an increase in its earnings in 2Q17 compared to 2Q16.

American International Group (AIG) is covered by 18 analysts, out of which seven analysts gave “strong buy” ratings on the stock.

In 2Q17, on the basis of annualized new business premiums, sales in Prudential’s Individual Life business stood at $153 million, reflecting a marginal decline of ~3.8% year-over-year.

Wall Street analysts have given a one-year price target of $70.00 on American International Group (AIG), which reflects an ~14.1% increase from the current price.

In 2Q17, earnings from Prudential’s asset management business stood at $218 million compared to $207 million in 2Q16.

In 2Q16, AIG reported operating general operating expenses (or GOE) of $2.4 billion, which the company reduced by $191.0 million. It reported GOE of $2.2 billion in 2Q17.

After excluding market-driven and discrete items, earnings from Prudential Financial’s individual annuities stood at $512 million in 2Q17 compared to $375 million in 2Q16.

AIG is expected to declare dividends of $1.33 per share in 2017, reflecting a rise of ~38.5% from the total dividends declared in 2016.

AIG’s pretax operating income for personal insurance stood at $330 million in 2Q17. In 2Q16, it stood at $152 million.

American International Group’s (AIG) Consumer Business division reported pretax operating income of ~$1.3 billion in 2Q17 compared to $948.0 million in 2Q16.

In 2Q17, the pretax operating income of AIG’s Commercial Business division stood at $716 million compared to $941 million in 2Q16.

AIG is expected to post earnings per share of $1.22 in 3Q17, an ~20.3% decline from its 2Q17 earnings. AIG is expected to report revenues of ~$11.8 billion in 3Q17.

AIG’s Commercial division saw a loss ratio of 71.9 in 1Q17. AIG saw its book value expand ~2.5% in 1Q17 on a year-over-year basis.

In 4Q16, American International Group (AIG) spent $206.0 million on restructuring initiatives that target inefficiencies and expense reduction.

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’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.

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 expects annual savings of $400 million–$500 million through its restructuring initiatives, consisting mainly of employee severance and improvement of technology platforms.

Berkshire Hathaway (BRK-B) saw underwriting revenues rise on a year-over-year basis in 3Q16 to $12.4 billion.

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.

Berkshire might see a depletion in the valuation of its financial portfolio, mainly due to the fall in Wells Fargo stock.

American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives.

In 2016, American International Group (AIG) has continued to focus on strengthening its balance sheet.

Prudential Financial has been very consistent with dividend payouts to shareholders, which makes it a very strong prospect for long-term value investors.

Prudential Financial had a balance sheet capital capacity of $797 billion as of June 30, 2016. Its parent company’s cash and equivalents stood at $4 billion.

Berkshire Hathaway’s statutory surplus for its insurance businesses was $124 billion on December 31, 2015.

AIG’s stock is below its pre-Brexit level, but it has recovered substantially as buying continues in the US-based entities.

Prudential Financial (PRU) reported its 2Q16 earnings results on August 3, 2016. It reported adjusted operating income per share of $1.84 in the quarter.