Bloomberg News

AIG Price Target Raised at Deutsche Bank After Hancock Meeting

June 19, 2013

American International Group Inc. (AIG:US) had its price target raised by Deutsche Bank AG after the bank’s equity analysts met with Peter Hancock, the chief executive officer of AIG’s property-casualty unit.

AIG shares will rise to $56, Deutsche Bank’s Joshua Shanker said in a note to investors dated yesterday. His previous share price estimate was $52.

Shanker is “more confident” that New York-based AIG is ahead of schedule on a plan to improve margins in its property-casualty business after meeting with Hancock, he said in the note. The company will probably start paying a dividend (AIG:US) of 17 cents a share in the third quarter, he said.

“We are more confident about the pace of loss-ratio improvement offset by less confidence in expense management,” Shanker wrote. “The engines of this improvement relate to business mix, improved claims processes, de-emphasis of casualty business, more scientific approach to modeling loss trends.”

AIG climbed (AIG:US) less than 1 percent to $45.48 at 12:52 p.m. in New York and may post its first gain in four trading days. It has advanced 29 percent this year.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


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Companies Mentioned

  • AIG
    (American International Group Inc)
    • $55.02 USD
    • 0.32
    • 0.58%
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