morning call ... 05 11 2007

AIG, 1Q 2007 -topped the earning estimate, net profit 29% ($4.33 bil, $1.58 per share, vs $1.22 per share last year), op profit $1.68 vs 1.55 -driver: growth in oversea life business - same theme, single digit 4% in past three years. double digits overseas, only a small share of international mkt. more room to grow. -especialy property casualty, increased 33% to $2.98 bil - same theme, mother nature's mercy -weakness: earning from mortgage guarenty unit dropped 94% to $7 million share fell 1% MKT cap $187 bil, company will buy back $9 bil of shares 5y Senior CDS - 11 bps 30y bond, AA, 100 bps over Trea