Market Underestimating AIG's Prospects

Some may be skeptical of the firm's turnaround efforts, but we still see plenty of opportunities to improve the business.

Brett Horn, CFA

Nov 16, 2016

Mentioned: American International Group Inc (AIG)

Brett Horn: AIG is a complicated enterprise. There's a lot of noise surrounding the company right now. But in our view, it's fundamentally a simple story.

We think it's really the previous management team's growth-first, undisciplined philosophy that led to its historical issues. Current CEO Peter Hancock, while his tenure has not been mistake-free, has really set a course in the opposite direction. We think AIG has quantifiable opportunities to improve returns by divesting noncore businesses, exiting problematic lines, and improving operating efficiency.

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

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