AIG reported after-tax net operating income of $3.637 billion, $2.46 a share, for for the first half of 2013, declining from $4.724 billion, or $2.60 a share, during the first half of 2012. The earnings decline reflected gains in the fair value of AIA Aurora LLC and Maiden Lane III, which was set up in 2008 by the U.S. Treasury and the Federal Reserve to purchase heavily discounted AIG credit default swaps as part of AIG's bailout by the federal government. The Fed sold the last of Maiden Lane III's portfolio in August 2012. AIG's bailout came to an end in December 2012, when the Treasury sold its last holdings of AIG shares and said "the overall positive return on the Federal Reserve and Treasury's combined $182 billion commitment to stabilize AIG during the financial crisis is now $22.7 billion."
AIG's shares closed at $51.85 Friday, returning 47% this year. The shares trade for 12.0 times the consensus 2014 EPS estimate of $4.33.
Chubb Corp. (CB - Get Report) reported underwriting income of $1.245 billion for the first three quarters of 2013, increasing from $880 million in the first three quarters of 2012. The combined ratio improved to 86.4% for the first three quarters from 90.1% a year earlier. That's the best P&C combined ratio among the companies listed here, and it's reflected in the stock's market valuation to earnings estimates.
The company's net income for the first three quarters was $1.776 billion, or $6.80 a share, increasing from $1.443 billion, or $5.25 a share, during the first three quarters of 2012.Chubb's shares closed at $92.20 Friday, returning 24% this year. The shares trade for 12.4 times the consensus 2014 EPS estimate of $7.46. -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn