June 19 (Bloomberg) -- American International Group Inc. 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 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 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 firstname.lastname@example.org
To contact the editor responsible for this story: Dan Kraut at email@example.com