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.
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.
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) 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 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 […]
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 […]
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 […]
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 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.
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.
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) North America Commercial Property and Casualty Insurance division witnessed a marginal fall in its net premiums written in 2Q17 as compared to 2Q16.
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.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
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.
American International Group (AIG) has stated that it will return $25 billion to its shareholders in 2016 and 2017. This is equivalent to 40% of its market capitalization.
American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives for organizational simplification, operational efficiency, and business rationalization.
Berkshire Hathaway (BRK-B) is the tenth-largest US commercial lines insurer by direct premium volume. Its commercial lines division has expanded by 125% over the past five years to $5.6 billion.
Prudential Financial’s (PRU) International Insurance segment reported sales of $781 million on a constant dollar basis in the quarter ended March 31, 2016.
Prudential Financial’s (PRU) operating income for its US Individual Life and Group Insurance segment remained stable for 1Q16 at $146 million, unchanged from 1Q15.
Prudential Financial (PRU) has been very consistent with dividend payouts to shareholders, which makes the stock a very strong prospect for long-term value investors.
In 1Q16, Prudential’s revenues fell 4.4% year-over-year to $11.3 billion. On a constant dollar basis, the company saw a decline in its international insurance and US retirement solutions businesses.
In the March quarter, Berkshire Hathaway saw strong growth in its insurance business from GEICO, but this was more than offset by its reinsurance business.
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.
American International Group (AIG) has announced that it will spend $500 million on restructuring initiatives for organizational simplification, operational efficiency, and business rationalization.
As AIG continues to decline, there are suggestions as well as speculation of an AIG sale. These speculations, although they seem unlikely to happen, can push AIG’s stock prices.
In 4Q15, AIG repurchased 53 million shares for an aggregate purchase price of $3.2 billion. It made additional repurchases of $2.5 billion through the end of February 11, 2016.
In 2015, AIG continued its simplification process for its balance sheet. In 2016, AIG is expected to strengthen its balance sheet with higher operating cash flows.
AIG reported a pre-tax operating loss of $2.1 billion for its commercial insurance business in 4Q15 compared to a pre-tax operating income of $1.2 billion in 4Q14.
AIG is expected to report EPS of $1.08 compared to operating loss per share of $1.10 in the December quarter. The company is looking to exit its hedge funds and continue stock buybacks.
