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AIG Seeks To Manage $25 BILLION in Tax Assets


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Losses at New York-based AIG and its subsidiaries helped rack up more than $25 billion of so-called deferred tax assets as of Dec. 31 that may lower obligations to governments. Chief Executive Officer Robert Benmosche, 67, said last month the insurer is assembling a “world-class team” to manage the assets and that they may be used for buybacks when AIG is prepared to repurchase stock.


-and here is something AIG bears never talk about...


Analysts at JPMorgan Chase & Co. and Barclays Plc have said AIG’s tax benefit may be worth at least $5 a share.
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AIG slipped 2.2 percent to $24.10 in extended trading at 5:34 p.m. in New York. The company has plunged about 49 percent this year, compared with a gain of less than 1 percent in the Standard & Poor's 500 Index.


The insurer's board approved the repurchase of as much as $1 billion in stock, AIG said in a separate statement. Timing of purchases will depend on "AIG's financial condition, results of operations, liquidity and other factors," the company said.


The results included a mark-to-market loss on AIA of about $2.3 billion. AIG retained a stake in the insurer after divesting two-thirds of the company last year in an initial public offering. AIA sank 17 percent in the third quarter as the European debt crisis and the possibility of the U.S. economy relapsing into recession weighed on financial-services stocks.


An agreement with underwriters prohibited AIG from selling any of its remaining stake until last month. The end of that lock-up period may have contributed to the Asian insurer's share slide, said Cliff Gallant, an analyst at KBW Inc.


At least Berkowitz has to like the share repurchases! 8)

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AIG controls the Fate of the S&P 500 (Interesting earnings story...)




S&P 500 companies are expected to earn $30 billion more in the fourth quarter of 2011 than they earned in the fourth quarter of 2010, according to analyst consensus projections from FactSet. However, AIG is expected to account for $15 billion of that total.


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