Company Update (NYSE:AIG): AIG to spin off mortgage unit, cut jobs in sweeping overhaul

[Reuters] – The insurer said in a statement on Tuesday that it plans to cut $1.6 billion of costs and return at least $25 billion to shareholders over the next two years. Tensions have been mounting between Chief Executive Peter Hancock and Icahn over the billionaire’s repeated suggestion that the insurer should split into three – an idea that Hancock has rejected. Instead, AIG said it planned to streamline its business through divestitures, including the sale of AIG Advisor Group, a network of independent broker-dealers, to Lightyear Capital LLC and PSP Investments. Read more on this. American International Group, Inc. (AIG) , valued at $69.16B, started the session at $56.22. Looking at the stock, its one day range is $55.58 to $56.64 with a one year range of $48.68 to $64.93. AIG shares are currently priced at 13.06x this year’s forecasted earnings, which makes them relatively expensive compared to the industry ’s 12.96x forward p/e ratio. The company pays shareholders $1.12 per share in dividend income per year, for a current yield of 1.99%. According to a consensus of 22 analysts, the earnings estimate of $1.05 per share would be $0.08 better than the year-ago quarter and a $0.16 sequential decrease. Furthermore, our analysis shows the full-year EPS estimate to be $4.24, which would be a $0.34 setback when compared to the last year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $13.67 Billion. If reported, that would be a 63.32% increase over the year-ago quarter. More recently, Standpoint Research upgraded AIG from Hold to Buy (Jan 19, 2016). Previously, Standpoint Research downgraded AIG from Buy to Hold. The average price target for AIG shares by the analysts covering it is $67.83, which is 20.65% above where the stock opened. See more in (NYSE:AIG) Similar Articles: Stock Update (NYSE:AIG): Exclusive: AIG to pursue spin-off of mortgage insurance unit Company Update: American International Group Inc (NYSE:AIG) – ASSA to Acquire AIG Operations in Central America Company Update: American International Group Inc (NYSE:AIG) – A.M. Best Withdraws Ratings of The Fuji Fire & Marine Insurance Company, Limited and AIU Insurance Company, Ltd.