AIG Target Raised at Deutsche Bank After Hancock Meeting
American International Group Inc. (AIG) 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.
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