logo
  Join        Login             Stock Quote

Insurance Companies, American International Group and MGIC Investment Corp., Get a Fresh Start

Wednesday, December 12, 2012 9:30 AM


http://media.marketwire.com/attachments/201102/30648_Shinesroom.JPGhttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=965075&ProfileId=051205&sourceType=1

NEW YORK, NY -- (Marketwire) -- 12/12/12 -- Companies with insurance offerings, such as American International Group (NYSE: AIG) and MGIC Investment Corp. (NYSE: MTG), have been excelling of late, and look well positioned for growth as 2012 comes to a close. A number of companies have benefited from improving pricing trends, which bodes well moving forward, and higher yields on investments have also been a boon for some. Several companies have also been taking positive steps forward in regards to paying back loans and settling disputes, which could make for a solid 2013.

Access our free reports on American International Group and MGIC Investment Corp. at

http://www.ShinesRooms.com/AIG121212.pdf

http://www.ShinesRooms.com/MTG121212.pdf

The big news in the industry of late has been surrounding the U.S. Department of the Treasury and American International Group. The company announced that the Treasury has priced an offering of about 234.2 million shares of AIG at a price to market of $32.50 per share and after closing the transaction the Treasury will have sold all of its shares in the company. This is good news for AIG, as following the completion of the transaction it can close the chapter on its bailout. Share prices rose substantially following the news.

AIG has also been undergoing a lot of restructuring of late, as it attempts to focus on its core insurance operations. The company newly stated that it has entered into an agreement with an investor group, under which AIG will sell as much as a 90% interest in International Lease Finance Corporation. The deal is expected to close in the second quarter of next year, and will allow the company to better address its core business. The company has also been making moves abroad, specifically in China, as it looks to capitalize on the rapidly expanding market there. AIG has signed a non-binding agreement with the People's Insurance Company of China in order to sell life insurance in the populous nation.

MGIC has also been busy over the last little while. The company newly stated that it has come to an agreement with the Federal Home Loan Mortgage Corporation, better known as Freddie Mac, whereby it will pay over $267 million to put an insurance dispute regarding coverage on groups of loans to rest and maintain its status as an approved limited mortgage insurer with the Corporation. The company also recently released its November Operational Summary of its insurance subsidiaries' primary mortgage insurance. Primary New Insurance Written came in at $2.2 billion, and the company also managed to shrink the number of loans in its primary delinquent inventory from 146,282 at the beginning of the month to 143,153 at the conclusion.

One event that has had a negative impact on a number of companies in the industry, not to mention individuals and businesses, is hurricane Sandy. On top of the tragic loss of life, the hurricane also caused billions of dollars worth of damage, which some insurers are now obliged to cover. For example, AIG recently announced that its preliminary estimate for its after-tax losses related to the storm, net of reinsurance, will be around $1.3 billion. The company reported that Sandy related losses will be recorded in the 4th quarter. Interested investors may want to take a closer look at other company's 4th quarter financials once they are released, to see what kind of financial impact, if any, the storm has had.

While the industry has faced a number of obstacles, it is looking up as a whole. The recovering economy in the U.S. bodes well, and for those with an international presence, emerging markets also look strong. If the Eurozone is able to continue with its turnaround efforts in 2013, the industry could also receive a boost, though a great number of challenges still stand in the way.

About Shinesrooms.com

Shine's Rooms is the brain child of David Shine, a 13 year Wall Street veteran with a stellar track record. For 13 years Shine has trained thousands of traders to navigate and profit from the markets. Using cutting edge technology, Shine provides you with a community in which you can trade alongside Shine and his Team as they guide you through the market's ever-changing landscape.

To view our disclaimer, visit this link http://www.shinesrooms.com/disclaimer.html.

Contact Person:

Michael Thomas Smith
Marketing Coordinator
info@shinesrooms.com


(Source: Market Wire )
(Source: Quotemedia)

Advertisement
Advertisement



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.