AIG (NYSE:AIG)’s fourth quarter results were disappointing, which caused its stock price to decline -3.44% in the first quarter, detracting -0.12% from performance in the period. However, AIG’s share price has increased slightly more than 20% in the trailing twelve month period. The company took an additional reserve to account for poorly underwritten Property & Casualty policies. Nevertheless, we were heartened to see that the board held management accountable and removed the CEO responsible. We continue to hold our AIG stake that trades at just 0.83x tangible equity.
From Steven Romick (Trades, Portfolio)'s first quarter 2017 FPA Crescent Fund commentary.
