...Government Bailout
Robert Benmosche, the Chief Executive Officer of American International Group (NYSE:AIG) said,”Today truly marks a new beginning. We recognize that we have to stand on our own and meet the expectations of the marketplace. Our performance has improved, we’ve pulled out of the crisis, and you will see AIG continue to grow as it did before.” U.S. insurance giant American International Group Inc., under government-supervised rehabilitation, said Friday it has repaid in full some $21 billion to the Federal Reserve Bank of New York as agreed with the U.S. government.
Subsidiaries
American International Group, Inc. (AIG), is a holding company, which through its subsidiaries, is engaged primarily in a range of insurance and insurance-related activities in the United States and abroad. AIG’s four reportable segments include: General Insurance, Domestic Life Insurance & Retirement Services, Foreign Life Insurance & Retirement Services, and Financial Services. In March 2010, the Company closed the sale of a portion of its asset management business to Pacific Century Group.In November 2010, MetLife, Inc. acquired American Life Insurance Company from American International Group, Inc. In December 2010, Fortress Investment Group LLC acquired 80% interest in American General Finance Inc. from the Company.
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Trading Session
American International Group (NYSE:AIG) closed Thursday’s seesaw trading session at $43.18. In the past year, the stock has hit a 52-week low of $21.54 and 52-week high of $62.87. American International Group stock has been showing support around $41.21 and resistance in the $46.99 range. Technical indicators for the stock are Bearish and S&P gives AIG a neutral 3 STARS (out of 5) hold rating. For a hedged play on this stock, look at the Jan & 12 $25.00 covered call for a net debit in the $17.48 area. That is also the break-even stock price for this trade. This covered call has a duration of 365 days, provides 59.52% downside protection and an assigned return rate of 43.02% for an annualized return rate of 43.02% (for comparison purposes only). American International Group does not pay dividends at this time. [ABR-Seven Summits Research]
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