Wall Street investment analysts continue to look for signs of stability and instability at American International Group Inc.[@@]
AIG, New York, impressed observers Wednesday by reporting a 50% increase in net income despite the investigations that led to the ouster of Maurice Greenberg, the company’s longtime chairman.
Peter Streit, an analyst at Williams Capital Advisors L.P., New York, is optimistic about AIG’s prospects.
“Indications are that the company is about to reach an agreement with [New York Attorney General Eliot] Spitzer for a dollar figure in the area of $850 million,” Streit says.
Such a figure would be in line with recent settlements at the big insurance brokers and would not put much of a dent in a company with AIG’s level of capitalization, Streit says.
Many AIG segments performed surprisingly well during the second quarter, Streit adds.