SWX:AIG

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American International Group

Executive Summary

American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has American International Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIG has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

AIG

-3.5%

CH Insurance

-1.9%

CH Market


1 Year Return

0%

AIG

-14.9%

CH Insurance

1.0%

CH Market

Return vs Industry: AIG exceeded the Swiss Insurance industry which returned -14.9% over the past year.

Return vs Market: AIG underperformed the Swiss Market which returned 1% over the past year.


Shareholder returns

AIGIndustryMarket
7 Day0%-3.5%-1.9%
30 Day0%-2.2%-1.0%
90 Day0%10.6%6.0%
1 Year2.4%0%-9.4%-14.9%4.5%1.0%
3 Year-10.7%-17.0%14.0%-3.5%16.0%3.9%
5 Year-6.8%-16.9%40.5%5.9%24.9%5.2%

Price Volatility Vs. Market

How volatile is American International Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is American International Group undervalued compared to its fair value and its price relative to the market?

44.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIG (CHF52.28) is trading below our estimate of fair value (CHF94.67)

Significantly Below Fair Value: AIG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AIG is good value based on its PE Ratio (6.5x) compared to the CH Insurance industry average (9.2x).

PE vs Market: AIG is good value based on its PE Ratio (6.5x) compared to the Swiss market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: AIG is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: AIG is good value based on its PB Ratio (0.5x) compared to the CH Insurance industry average (0.8x).


Next Steps

Future Growth

How is American International Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIG's forecast earnings growth (1.6% per year) is above the savings rate (-0.2%).

Earnings vs Market: AIG's earnings (1.6% per year) are forecast to grow slower than the Swiss market (9.1% per year).

High Growth Earnings: AIG's earnings are forecast to grow, but not significantly.

Revenue vs Market: AIG's revenue is expected to decline over the next 3 years (-1.6% per year).

High Growth Revenue: AIG's revenue is forecast to decline over the next 3 years (-1.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIG's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has American International Group performed over the past 5 years?

-30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIG has high quality earnings.

Growing Profit Margin: AIG became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AIG's earnings have declined by 30.6% per year over the past 5 years.

Accelerating Growth: AIG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AIG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (11.6%).


Return on Equity

High ROE: AIG's Return on Equity (7.8%) is considered low.


Next Steps

Financial Health

How is American International Group's financial position?


Financial Position Analysis

Short Term Liabilities: AIG's short term assets ($77.9B) do not cover its short term liabilities ($109.5B).

Long Term Liabilities: AIG's short term assets ($77.9B) do not cover its long term liabilities ($339.1B).


Debt to Equity History and Analysis

Debt Level: AIG's debt to equity ratio (58.2%) is considered high.

Reducing Debt: AIG's debt to equity ratio has increased from 29.5% to 58.2% over the past 5 years.

Debt Coverage: AIG's debt is not well covered by operating cash flow (0.09%).

Interest Coverage: AIG's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

What is American International Group current dividend yield, its reliability and sustainability?

3.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIG's dividend (3.98%) is higher than the bottom 25% of dividend payers in the Swiss market (1.82%).

High Dividend: AIG's dividend (3.98%) is in the top 25% of dividend payers in the Swiss market (3.89%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AIG has been paying a dividend for less than 10 years.

Growing Dividend: AIG's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.7%), AIG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIG's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Brian Duperreault (73 yo)

3.25yrs

Tenure

US$19,369,637

Compensation

Mr. Brian Charles Duperreault has been the Chief Executive Officer and Director at American International Group, Inc. since May 14, 2017. Mr. Duperreault served as President at American International Group ...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD19.37M) is above average for companies of similar size in the Swiss market ($USD6.67M).

Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Brian Duperreault
CEO & Director3.25yrsUS$19.37m0.013%
$ 3.4m
Peter Zaffino
President0.58yrUS$18.39m0.0016%
$ 412.9k
Mark Lyons
Executive VP & CFO1.67yrsUS$7.76mno data
Douglas Dachille
Executive VP & Chief Investment Officer4.92yrsUS$10.55m0.0095%
$ 2.4m
Kevin Hogan
Executive VP and CEO of Life & Retirement6.83yrsUS$8.29m0.019%
$ 4.8m
Elias Habayeb
Senior VP0.42yrno data0.0016%
$ 420.6k
John Repko
Executive VP & Chief Information Officer1.92yrsno datano data
Sabra Purtill
Deputy CFO and Head of Treasury1yrno datano data
Karen Nelson
Chief Compliance Officer10.58yrsno datano data
Luciana Fato
Executive VP & General Counsel2.83yrsno data0.00088%
$ 224.3k
Cindy Leggett-Flynn
Chief Communications Officer & Senior VP3.92yrsno datano data
David May
Chief Marketing Officer6.92yrsno datano data

3.0yrs

Average Tenure

56.5yo

Average Age

Experienced Management: AIG's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Duperreault
CEO & Director3.25yrsUS$19.37m0.013%
$ 3.4m
Henry Miller
Independent Director10.33yrsUS$305.00kno data
William Jurgensen
Independent Director7.25yrsUS$355.00k0.0041%
$ 1.0m
W. Cornwell
Independent Director9.25yrsUS$335.00kno data
Thomas Motamed
Independent Director1.58yrsUS$290.19k0.0029%
$ 739.2k
Douglas Steenland
Independent Chairman of the Board5.08yrsUS$555.00k0.00056%
$ 142.7k
John Fitzpatrick
Independent Director9.25yrsUS$310.38k0.000010%
$ 2.5k
Peter Porrino
Independent Director1.25yrsUS$246.92kno data
Therese Vaughan
Independent Director1.25yrsUS$246.92k0.00012%
$ 30.6k
Linda Mills
Independent Director5.08yrsUS$327.30kno data
Amy Schioldager
Independent Director1.25yrsUS$246.92kno data
Christopher Lynch
Independent Director11.17yrsUS$315.00k0.00037%
$ 94.3k

5.1yrs

Average Tenure

68.5yo

Average Age

Experienced Board: AIG's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AIG insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

American International Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American International Group, Inc.
  • Ticker: AIG
  • Exchange: SWX
  • Founded: 1919
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$27.682b
  • Listing Market Cap: US$25.489b
  • Shares outstanding: 861.29m
  • Website: https://www.aig.com

Number of Employees


Location

  • American International Group, Inc.
  • 175 Water Street
  • New York
  • New York
  • 10038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
AIG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
AINNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0OALLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
AIGSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1969
AINNXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1969
AIGSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 1969
AIGWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
AINNETLX (Eurotlx)YesCommon StockITEURJan 1969
AIGBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REPR 1 ORD USD2.50ARARSSep 2000
AIGB34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM USD2.50BRBRLOct 2016
AIG.PRANYSE (New York Stock Exchange)5.85 DP SH PFD AUSUSDMar 2019

Biography

American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. The company’s General Insurance segment offers g ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 20:56
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.