Stock Update (NYSE:AIG): Exclusive: AIG to pursue spin-off of mortgage insurance unit

[Reuters] – The spin-off of that business however, which accounted for 7.4 percent of AIG’s pre-tax operating income in the first nine months of 2015, is unlikely on its own to appease Icahn, who is calling for AIG to break up into three separate businesses. The mortgage insurance business had revenue of $791 million in the first nine months of 2015. AIG is expected to discuss the future of the mortgage insurance business on Tuesday, when it releases its strategic plan, and the sources said this week the company will pursue a partial spin-off of the asset. Read more on this. American International Group, Inc. (AIG) , currently valued at $69.71B, started the session at $56.35. Looking at today’s trading action, the company’s one day range from $55.66 to $56.93 with the price of the stock fluctuating between $48.68 to $64.93 over the last 52 weeks. Priced at 13.04x this year’s forecasted earnings, AIG shares are relatively inexpensive compared to the industry ’s 13.30x forward p/e ratio. The company pays shareholders $1.12 per share annually in dividends, yielding 2.03%. In a review of the consensus earnings estimate this quarter, 22 sell-side analysts are looking at $1.05 per share, which would be $0.08 better than the year-ago quarter and a $0.17 sequential decrease. What we find to be interesting is that the full-year EPS estimate of $4.24 is a $0.34 setback when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $13.67 Billion. If realized, that would be a 63.32% increase over the year-ago quarter. In terms of ratings, 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 the stock is $67.83, which is 20.37% above where the stock opened this morning. See more in (NYSE:AIG) Similar Articles: 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. Stock Update (NYSE:AIG): Willis and AIG Launch Evergreen – a New Automatically Renewing Insurance Policy for Mid-Market Clients Stock Update: American International Group Inc (NYSE:AIG) – AIG Board of Directors Authorizes Repurchase of Additional Shares of AIG Common Stock, Declares Increased Common Stock Dividend