Editor’s Note: Related tickers: American International Group, Inc. (NYSE:AIG), MGIC Investment Corp. (NYSE:MTG), American Financial Group (NYSE:AFG), Prudential Public Limited Company (ADR) (NYSE:PUK), Radian Group Inc (NYSE:RDN), Berkshire Hathaway Inc. (NYSE:BRK.A), The Kroger Co. (NYSE:KR), Bank of America Corp (NYSE:BAC)
Buffett Bets on Business Insurance ‘Big Time’ (BusinessWeek)
Warren Buffett, the billionaire chairman of Berkshire Hathaway Inc. (NYSE:BRK.A), is planning an expansion in commercial insurance after hiring four executives from American International Group, Inc. (NYSE:AIG) “We would like to get into the commercial-insurance business very big time,” Buffett, 82, said yesterday in an interview with Bloomberg Television’s Betty Liu, before the company’s annual meeting this weekend in Omaha, Nebraska. “We hired them because they’re very good at the commercial insurance business.” …Berkshire Hathaway Inc. (NYSE:BRK.A) has units that provide auto coverage and reinsurance and hasn’t played a big role in providing business policies, Buffett said. Buffett, who’s also Berkshire Hathaway Inc. (NYSE:BRK.A)’s CEO, said he didn’t poach the executives from New York-based American International Group, Inc. (NYSE:AIG).
American International Group Given New $53.00 Price Target at BMO Capital Markets (AIG) (UtahPeoplesPost)
Analysts at BMO Capital Markets lifted their price target on shares of American International Group, Inc. (NYSE:AIG) from $1.34 to $53.00 in a research report issued to clients and investors on Friday, StocKRatingsNetwork.com reports. Ten analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. American International Group, Inc. (NYSE:AIG) has a consensus rating of “Hold” and a consensus target price of $42.44. Shares of American International Group, Inc. (NYSE:AIG) traded up 5.49% during mid-day trading on Friday, hitting $44.445. American International Group has a 52 week low of $27.18 and a 52 week high of $42.66. The stock’s 50-day moving average is currently $39.37. The company has a market cap of $65.615 billion and a P/E ratio of 20.67.
MGIC Reports Wider Loss YoY (Nasdaq)
MGIC Investment Corp. (NYSE:MTG) reported first quarter 2013 operating loss of 31 cents per share, substantially worse than the Zacks Consensus Estimate of a loss of 20 cents per share. MGIC Investment Corp. (NYSE:MTG) had reported an operating loss of 10 cents per share in the year-ago quarter. Total revenue for the quarter came in at $269.2 million, down 29.1% year over year. Results were also below the Zacks Consensus Estimate of $285 million. Net premiums written were $248.5 million, down 2.5% year over year. The company’s new insurance written soared 54.8% year over year to $6.5 billion in the quarter. MGIC Investment Corp. (NYSE:MTG)’s primary insurance in force stood at $159.5 billion, down 1.6% from $162.1 billion at year end 2012.
Compass Point Downgrades MGIC Investment to Neutral on Fairly Balanced Risk/Reward (Benzinga)
In a report published Wednesday, Compass Point analyst Jason Stewart downgraded the rating on MGIC Investment Corp. (NYSE:MTG) from Buy to Neutral, but raised the price target from $3.00 to $5.00. In the report, Stewart noted, “We have been staunch supporters of the role of private mortgage insurance (MI) in the US housing finance markets and that view has not changed. However, assigning a value greater than $5 to MGIC Investment Corp. (NYSE:MTG) shares today is akin to making a wager on the government’s propensity and ability to transform the US housing finance market from one that is funded publicly to one largely funded by private capital.
Five major Cincinnati firms agree to give millions to Cintrifuse (BizJournals)
The Cintrifuse Early Stage Capital Fund I has five new major investors in American Financial Group (NYSE:AFG), The Kroger Co. (NYSE:KR), Castellini Management Co., the Greater Cincinnati Foundation and Messer Financial Services Inc. The venture capital fund of funds has now closed on $51 million, up from $40 million in December, according to a news release. The Greater Cincinnati Foundation invested $1 million, spokeswoman Beth Benson said. A The Kroger Co. (NYSE:KR) spokesman said the company won’t release how much it invested. Spokespeople from Messer and American Financial Group (NYSE:AFG) also chose not to reveal the companies’ contributions. A spokesperson from Castellini Management Co. was not immediately available.
Asian Pay Television IPO Draws Soros, Prudential (WSJ)
Financier George Soros and Prudential Public Limited Company (ADR) (NYSE:PUK)‘s funds arm are among the nine investors in the latest Southeast Asian initial public offering to attract foreign interest: the up to 1.4 billion Singapore dollar (US$1.1 billion) listing of Taiwanese pay-television operator Asian Pay Television Trust. Asian Pay Television Trust is the investment vehicle of Taiwan Broadband Communications, which is owned by two funds managed by Australia’s Macquarie Group Ltd. MQG.AU +10.88% —the Macquarie International Infrastructure Fund, or MIIF, and Macquarie Korea Opportunities Fund. The cornerstone investors are Quantum Vehicle, the investing vehicle of the Soros family; Prudential Public Limited Company (ADR) (NYSE:PUK)’s funds through its unit Eastpring Investments (Singapore) Ltd…
Prudential plc Rating Reiterated by Bank of America (PRU) (Zolmax)
Prudential Public Limited Company (ADR) (NYSE:PUK)‘s stock had its “buy” rating reaffirmed by research analysts at Bank of America Corp (NYSE:BAC) in a report released on Thursday, Analyst Ratings Network reports. Shares of Prudential Public Limited Company (ADR) (NYSE:PUK) traded up 0.99% during mid-day trading on Thursday, hitting GBX 1118.00. Prudential plc has a one year low of GBX 654.50 and a one year high of GBX 1180.4921. The stock’s 50-day moving average is currently GBX 826.4. The company’s market cap is £28.501 billion.
Radian loss widens on tough comparison (MarketWatch)
Radian Group Inc (NYSE:RDN) +2.78% widened its fiscal first-quarter loss even as earned net premiums climbed, as the mortgage insurer came up against a year-earlier period helped by investment gains. Companies such as Radian Group Inc (NYSE:RDN) Guaranty typically insure mortgages when a borrower makes a down payment of less than 20%. Mortgage insurers pay lenders a portion of their losses if homeowners default on their loans. While mortgage-insurance policies sold in recent years have so far proved to be highly profitable, Radian Group Inc (NYSE:RDN) and some other players remain saddled with money-losing policies sold in the years before the housing bubble popped.
