Investors were unimpressed with AIG’s outlook for 2020 and a new savings target for its cost-savings program (which is likely more rifs) sending shares down by 3.6% to 50.93.
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BD answers questions about as well as Joe Biden.
I think PZ gave an order to reduce headcount, more RIF;s so they can hire more Senior Management. Lets make sure Bloomberg news knows about this.
Do you think PZ put an order in for a new customized jet yet?
I think the stock will continue to fall. The leadership is taking this company down.
The stock continues to fall. It now at 48.63.
It's nothing but Bull Sh......
That is AIG 200 to get the stock price to 61 in 100 years from now
UBS just cut price target for AIG to $61. What are they smoking???
the reason aig is even showing a slight underwriting profit is because the strategy has been to reinsure almost the entire book of business. insurance companies don't make money when they pay another company to reinsure their book, but because aig is so bad at underwriting profitable lines, this is bd's solution. at least short term. this justifies his $100,000,000 payday when he walks away.
Reinsurance, outsourcing to foreign countries, using tpa's and riffing as much staff as possible has gotten aig to a very unsustainable mediocre earnings report. So after 3 years, the stock is below $50 a share. we are bleeding customers and talent, our systems are obsolete and this group has the nerve to say how proud they are of what they have accomplished. frankly, I don't blame bd for hiding in Bermuda most of the time. it must be hard to show your face at 175 water.
aig 200, bah ha ha ha
The AIG stock continues in freefall. The stock is now down to 49.13.
The stock is at 49.92. What a sh_t stock. Employees should have a work slowdown
Well said by the recent poster that said to always watch Wall St. The consultants they bring in do one of two things:
- Convince senior management that they are unpaid and that they need to reduce the people that actually do the work in order to give themselves raises and huge pay packages
- Do the same work that the employees do at 3 to 4 times the cost and not as good.
Wall St probably knows this and as soon as the stock went up on mediocre earnings, they told their top clients to sell before it drops
Always watch wall street for the truth about a company. From what I can see here is the truth:
BD and PZ have been at this for 3 plus years now, and with all of the hype, GI can barely show a profit. And this profit was mainly due to a slow catastrophe year. This regime has been living on rifs and reduced costs to help drive the number, but there just isn't much left to cut. AIG is running bare bones to the point that it can't service it's clients and they are leaving, written premium down 9%. The low hanging fruit has just about been picked so what do you see BD mention in his dog and pony show? A new excuse to plunder for a few more years. Here is the quote:
AIG expects its efficiency improvement program, AIG 200, to reduce the company’s expense base by $1bn annually by the end of 2022, from a 2019 base of $8.5bn. The program will require investments of $1.3bn over the next three years and will focus on standardising and digitising the company’s operating infrastructure, from underwriting to procurement to investing. The company expects to take a restructuring charge associated with the program in the first quarter, but did not provide details. Chief executive Brian Duperreault said the cost-cutting program was “a marathon, not a sprint.”
3 more years and $1.3B more to plunder before PZ and all of his friends abandon ship. BD will be dipping out soon, but he already set PZ up for an excuse when AIG doesn't hit Q1 numbers, a restructuring charge! Wall Street isn't stupid.
Their cost cutting is people. Ironically they are hiring a bunch of Accenture people to do the work. And leadership wonders why morale stinks. They don't care now and never will. I wish I didn't hate the company I work for. Hope to remedy that forthwith.
Love how BD answered all the questions in town-hall, with No real answers 🤷♀️ Highest paid CEO to do a song and 💃 each Qtr. You go in and come out of Every town-hall (including his cronies and there cronies) feeling someone just robbed an hr of your life each time. Money well spent 👏.
Investors would be more impressed with the cost savings programme if they cut all the new execs hired during the BD regime and getting rid of McKinsey and Accenture. Wishful thinking.