The financial outcomes from AIG Q2-10Q are outstanding, and here are the highlights that I found,
- 2.0 billion shares repurchased ($5.0 billion YTD)
- Through 8/2, received proceeds of $6.1 billion on ML III interest with an additional $1.9 billion expected mid-August
- Through 8/2, AIG purchased $7.1 billion of ML III assets
- Insurance company distributions of $1.3 billion
- Issued $1.5 B senior unsecured notes
- Book value per common share increase 32% ! from $45.97 in Q2 2011 to $60.58 now. It means that the current share price (even though YTD increases by 40%) is still about half of BV even though. So we still have a lot of MOS.
- Net income increase by 27% compared with Q2 2011. After-tax Op income increases by 50%.
- After-tax Op income per diluted common share increases to $1.06 from $0.68 in Q2 2011.
- Parent liquidity sources total $11.5 billion at June 30, 2012. If we add in $6.1B from ML III paid in July and another $1.9B from ML III in mid Aug and another $950m from Met life deal. Then the total is $20B. In addition, if we add in $7.7B of AIA sale and $7B IPO of ILFC at Sept, we will have ~$35B. Note that the total treasury stake is ~$24B. So AIG has more than enough capital buy the leftover treasury stake, a big deal!
- Chartis’s Operating Income increase to $936 mil in Q2 2012 from $783 mil in Q2 2011
- SunAmeirca’s Operating Income increase to $933 mil in Q2 2012 from $723 mil in Q2 2011
- United Guaranty Corporation’s (UGC) operating income of $43 mil for Q2 2012, compared to $12 mil in Q2 2011. Also, there is a significant 17% decline in new delinquencies.
Overall, the Q2 results from AIG are excellent.
Here is the complete AIG_10Q_2Q2012 , AIG-Q2-Supplement, and and earning conference call – it is really worth while to listen to the details of it.
