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Stock Strategist

AIG Is on the Right Path

The market doesn't appreciate the insurer's improvement, and we think the shares are cheap.

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American International Group (AIG) blew itself up during the financial crisis and was only saved by a government bailout. However, the years since the financial crisis have shown that AIG would have destroyed substantial value even if it had never written a single credit default swap, had noncore businesses it needed to shed, and had material issues in its core operations that it needed to fix. More than a decade past the crisis, AIG continues to struggle to generate an acceptable return.

Brett Horn does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.