AIG CEO
Shares in AIG jumped as analysts forecast operating earnings could stabilize after five-straight quarterly losses. Analysts have predicted it could benefit from unrealized investment gains, partly reversing write-downs in earlier quarters.
There was also optimism surrounding the appointment of a new Chief Executive, Robert Benmosche, who next Monday will become the fourth person in the last 14 months to assume the insurer's leadership.
With the potential of good news looming in AIG, investors who are short AIG are being forced to cover their positions today. That has created a short-covering rally," he said.
In late afternoon trade, option traders had exchanged about 298,000 contracts in AIG, four times the average daily volume, according to option analytics firm Trade Alert. The turnover was dominated by 184,000 calls, which grant investors the right to buy AIG shares at a fixed price and time.
American International Group Inc is seen on average reporting second-quarter operating earnings of $1.31 a share, according to a Reuters poll of analysts. (Reporting by Lilla Zuill; Additional reporting by Doris Frankel in Chicago, Elinor Comlay and Steve Eder in New York; editing by Andre Grenon, Gerald E. McCormick and Bernard Orr) |