SWX:AIG

Stock Analysis Report

American International Group

Executive Summary

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

Snowflake

Fundamentals

Moderate growth potential unattractive 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


Market Performance


7 Day Return

0%

SWX:AIG

0.2%

CH Insurance

-0.5%

CH Market


1 Year Return

-1.4%

SWX:AIG

17.6%

CH Insurance

2.7%

CH Market

AIG underperformed the Insurance industry which returned 17.6% over the past year.

AIG underperformed the Market in Switzerland which returned 2.7% over the past year.


Share holder returns

AIGIndustryMarket
7 Day0%0.2%-0.5%
30 Day0%-1.0%-2.3%
90 Day0.5%5.1%0.6%
1 Year1.3%-1.4%23.8%17.6%8.1%2.7%
3 Year-1.2%-7.9%65.2%41.2%29.4%16.2%
5 Yearn/a81.7%38.2%32.8%12.2%

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 based on future cash flows and its price relative to the stock market?

19%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

American International Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

American International Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

American International Group is loss making, we can't compare its value to the CH Insurance industry average.

American International Group is loss making, we can't compare the value of its earnings to the Switzerland market.


Price Based on Expected Growth

Unable to calculate PEG ratio for American International Group, we can't assess if its growth is good value.


Price Based on Value of Assets

American International Group is good value based on assets compared to the CH Insurance industry average.


Next Steps

Future Growth

How is American International Group expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

American International Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

American International Group's earnings are expected to grow significantly at over 20% yearly.

American International Group's revenues are expected to decrease over the next 1-3 years, this is below the Switzerland market average.

American International Group's earnings growth is expected to exceed the Switzerland market average.

American International Group's earnings growth is expected to exceed the low risk savings rate of 3.3%.


Earnings per Share Growth Estimates


Future Return on Equity

American International Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-71.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

American International Group does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare American International Group's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare American International Group's 1-year growth to the CH Insurance industry average as it is not currently profitable.


Return on Equity

American International Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

American International Group used its assets less efficiently than the CH Insurance industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if American International Group improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is American International Group's financial position?


Financial Position Analysis

American International Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

American International Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

American International Group's level of debt (54.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (35.4% vs 54.9% today).

Operating cash flow is negative therefore debt is not well covered.

American International Group is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

2.56%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase American International Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

American International Group's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (2.02%).

American International Group's dividend is below the markets top 25% of dividend payers in Switzerland (3.89%).

Whilst dividend payments have been stable, American International Group has been paying a dividend for less than 10 years.

Dividend payments have increased, but American International Group only paid a dividend in the past 6 years.


Current Payout to Shareholders

The company is paying a dividend however it is incurring a loss.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).


Next Steps

Management

What is the CEO of American International Group's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Brian Duperreault (72yo)

2.3yrs

Tenure

US$20,854,669

Compensation

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


CEO Compensation Analysis

Brian's remuneration is higher than average for companies of similar size in Switzerland.

Brian's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

56yo

Average Age

The tenure for the American International Group management team is about average.


Board Age and Tenure

8.3yrs

Average Tenure

68yo

Average Age

The tenure for the American International Group board of directors is about average.


Insider Trading

American International Group individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellCHF411,54514 Aug 19
Seraina Macia
EntityIndividual
Shares7,550
Max PriceCHF54.51
BuyCHF51,95723 May 19
Therese Vaughan
EntityIndividual
Shares1,000
Max PriceCHF51.96

Ownership Breakdown


Management Team

  • Lucy Fato (53yo)

    Executive VP & General Counsel

    • Tenure: 1.8yrs
  • Doug Dachille (55yo)

    Executive VP & Chief Investment Officer

    • Tenure: 3.9yrs
    • Compensation: $9.71m
  • Jon Wismer

    Senior VP

    • Tenure: 1.0yrs
  • Peter Zaffino (52yo)

    Global COO & CEO of General Insurance

    • Compensation: $12.62m
  • Mark Lyons (62yo)

    Executive VP & CFO

    • Tenure: 0.7yrs
    • Compensation: $4.76m
  • Brian Duperreault (72yo)

    • Tenure: 2.3yrs
    • Compensation: $20.85m
  • Liz Werner

    Head of Investor Relations & VP

    • Tenure: 8.6yrs
  • John Repko (56yo)

    Executive VP & Chief Information Officer

    • Tenure: 0.9yrs
  • Kevin Hogan (57yo)

    Executive VP and CEO of Life & Retirement

    • Tenure: 5.8yrs
    • Compensation: $9.12m
  • Karen Nelson

    Chief Compliance Officer

    • Tenure: 9.6yrs

Board Members

  • Anthony Baldwin

    Chief Executive of AIG's UK Entity

  • W. Cornwell (71yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $344.11k
  • Doug Steenland (68yo)

    Independent Chairman of the Board

    • Tenure: 4.1yrs
    • Compensation: $564.11k
  • Linda Mills (69yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: $314.11k
  • Jerry Jurgensen (67yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: $354.11k
  • Suzanne Nora Johnson (62yo)

    Director

    • Tenure: 11.1yrs
    • Compensation: $314.11k
  • Henry Miller (73yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: $314.11k
  • Chris Lynch (61yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: $324.11k
  • Brian Duperreault (72yo)

    • Tenure: 2.3yrs
    • Compensation: $20.85m
  • John Fitzpatrick (62yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: $344.11k

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$47.245b
  • Listing Market Cap: US$46.298b
  • Shares outstanding: 869.91m
  • Website: Click here

Number of Employees


Location

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

Listings

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

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 Analysis2019/08/17 20:41
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.