Bernstein on AIG

This is it in a nutshell. Simple but 100% accurate. The $AIG story is still clouded by what happened in ’05-’10. It is the same company only in name now. Management is different, the Board is and the operating company itself is dramatically changed. ’13 is the year Benmosche’s efforts to reorganize it take hold and results start a dramatic improvement. Shares (and warrants AIG.WAS.A) at 1/2 BV will appreciate, rapidly as people begin to realize it.

9:03 AM (GMT-05:00) Eastern Time (US & Canada) Jan 28, 2013
9:03 EST – Bernstein Research is going all-in on AIG. A new note says AIG’s stock price presents “a once-in-a-generation opportunity.” AIG shares, up 1.09% to $37.10 in early trading this morning, are at about half of book value, but Bernstein predicts shares will outperform and the price-to-book multiple will improve in 2013. Notably, Bernstein compares post-bailout AIG to a company that’s just completed a “demutualization,” the process by which an insurer goes from a mutual to a public company. “The clearest analogue of course, is Metlife,” Bernstein writes. MET’s then-CEO Robert Benmosche, dramatically outperformed expectations at MET after it demutualized. And now, of course, he runs AIG.

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