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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.

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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.