American International Group Inc AIG

Morningstar Rating

Company Report

AIG Has Shown Improvement

The years since the financial crisis have shown that American International Group would have destroyed substantial value even if it had never written a single credit default swap. The business had noncore businesses it needed to shed and had material issues in its core operations that it needed to fix. We think some poor management decisions in the years following the crisis extended the company's issues, but results have changed for the better in recent years as the company found competent management. We are encouraged by the progress the company has made in improving underwriting margins, and management's efforts to reduce costs have been another material step. With AIG's stake in its former life insurance operations now eliminated, we think the progress the company has made on the P&C side is clearer.

Price vs Fair Value

AIG is trading at a LOCK|^@D>?> premium.
Price
$74.42
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
NJ
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

The aftermath of AIG's issues during the financial crisis occupied management's attention for quite some time. With these issues now resolved, there could be ample scope for improvement.

Bears

AIG has a history of under-reserving for claims, making it difficult to trust that current reserves are adequate.

News

Trading Information

Previous Close Price
—
Day Range
—–—
52-Week Range
—–—
Bid/Ask
— / —
Shares Outstanding
522.89M
Market Cap
—
Volume/Avg
— / —

Key Statistics

Price/Earnings (Normalized)
9.12
Price/Sales
1.54
Dividend Yield (Trailing)
2.52%
Dividend Yield (Forward)
2.65%
Dividend Payment Schedule
Mar, Jun, Sep, Dec
Total Yield
10.08%

Company Profile

American International Group is one of the largest insurance and financial services firms in the world and has a global footprint. It operates through a wide range of subsidiaries that provide property, casualty, and life insurance. The company recently spun off its life insurance operations (Corebridge), but still retains a minority stake.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Mid Value
Total Number of Employees
22,100

Competitors

Valuation

Metric
AIG
ZURN
CB
Price/Earnings (Normalized)
9.1212.4511.39
Price/Book Value
0.973.331.70
Price/Sales
1.540.992.11
Price/Cash Flow
5.23—10.61
Price/Earnings
AIG
ZURN
CB

Financial Strength

Metric
AIG
ZURN
CB
Quick Ratio
———
Current Ratio
———
Interest Coverage
9.9822.3618.85
Quick Ratio
No chart available

Profitability

Metric
AIG
ZURN
CB
Return on Assets (Normalized)
2.77%1.88%4.23%
Return on Equity (Normalized)
11.02%27.18%15.81%
Return on Invested Capital (Normalized)
8.99%17.19%12.04%
Return on Assets
AIG
ZURN
CB

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