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, had noncore businesses it needed to shed, and had material issues in its core operations that it needed to fix. We've been encouraged, however, by the recent progress in terms of improving underwriting margins, and management's efforts to reduce costs have been another material step.
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.
AIG has a history of under-reserving for claims, making it difficult to trust that current reserves are adequate.
|
Metric
|
AIG
|
CB
|
TRV
|
|---|---|---|---|
Price/Earnings (Normalized) | 10.77 | 11.08 | 15.61 |
Price/Book Value | 1.12 | 1.70 | 1.96 |
Price/Sales | 1.12 | 2.08 | 1.16 |
Price/Cash Flow | 5.41 | 9.99 | 4.64 |
|
Metric
|
AIG
|
CB
|
TRV
|
|---|---|---|---|
Quick Ratio | — | — | — |
Current Ratio | — | — | — |
Interest Coverage | 4.40 | 15.18 | 10.88 |
|
Metric
|
AIG
|
CB
|
TRV
|
|---|---|---|---|
Return on Assets (Normalized) | 0.93% | 4.29% | 2.61% |
Return on Equity (Normalized) | 11.71% | 16.92% | 13.93% |
Return on Invested Capital (Normalized) | 2.49% | 13.22% | 11.40% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
BRK.A
| Berkshire Hathaway Inc Class A | Wcdksgmp | Zgvw | $864.8 Bil | |
BRK.B
| Berkshire Hathaway Inc Class B | Nzlsxnfh | Ncws | $864.8 Bil | |
ALIZY
| Allianz SE ADR | Kwwhprtnsj | Jvfx | $109.7 Bil | |
AXAHY
| AXA SA ADR | Vvwvpgqw | Nyb | $80.3 Bil | |
ZURVY
| Zurich Insurance Group AG ADR | Grmbgksq | Ytfkx | $70.0 Bil | |
SLF
| Sun Life Financial Inc | Phsfxbl | Vszx | $29.7 Bil | |
AVVIY
| Aviva PLC ADR | Qcvbwxd | Zllkq | $15.4 Bil | |
AEG
| Aegon Ltd ADR | Pqljwdky | Mjw | $10.4 Bil | |
AGESY
| Ageas SA/ NV ADR | Jccr | Zrwl | $8.4 Bil |
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