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American International Group

DB:AINN
Snowflake Description

Moderate growth potential and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AINN
DB
$49B
Market Cap
  1. Home
  2. DE
  3. Insurance
Company description

American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. The last earnings update was 69 days ago. More info.


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AINN Share Price and Events
7 Day Returns
1.8%
DB:AINN
-1%
DE Insurance
-1.8%
DE Market
1 Year Returns
7.5%
DB:AINN
20.6%
DE Insurance
-6.7%
DE Market
AINN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American International Group (AINN) 1.8% 5.4% 22.3% 7.5% 1.1% 22.8%
DE Insurance -1% 3.2% 4% 20.6% 60.3% 60.2%
DE Market -1.8% 1.6% -1.6% -6.7% 10.1% 11%
1 Year Return vs Industry and Market
  • AINN underperformed the Insurance industry which returned 20.6% over the past year.
  • AINN outperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
AINN
Industry
5yr Volatility vs Market

AINN Value

 Is American International Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of American International Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for American International Group.

DB:AINN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 14 analysts.
= Stable Book Value * Return on Equity
= $76.68 * 7.6%
$5.79
Book Value of Equity per Share Weighted future Book Value estimates from 13 analysts. $76.68
Discount Rate (Cost of Equity) See below 6.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:AINN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.686 (1 + (1- 21%) (74.78%))
1.061
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.061 * 5.96%)
6.55%

Discounted Cash Flow Calculation for DB:AINN using Excess Returns Model Model

The calculations below outline how an intrinsic value for American International Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:AINN Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (7.6% – 6.55%) * $76.68)
$0.77
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.77 / (6.55% - 0.23%)
$12.13
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $76.68 + $12.13
$88.81
DB:AINN Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:AINN represents 0.88608x of NYSE:AIG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88608x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 88.81 x 0.88608
€78.69
Value per share (EUR) From above. €78.69
Current discount Discount to share price of €49.86
= -1 x (€49.86 - €78.69) / €78.69
36.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price American International Group is available for.
Intrinsic value
37%
Share price is €49.86 vs Future cash flow value of €78.69
Current Discount Checks
For American International Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • American International Group's share price is below the future cash flow value, and 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for American International Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American International Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:AINN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.28
NYSE:AIG Share Price ** NYSE (2019-07-15) in USD $56.27
Germany Insurance Industry PE Ratio Median Figure of 6 Publicly-Listed Insurance Companies 13.39x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 20.05x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of American International Group.

DB:AINN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AIG Share Price ÷ EPS (both in USD)

= 56.27 ÷ -0.28

-201.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American International Group is loss making, we can't compare its value to the DE Insurance industry average.
  • American International Group is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does American International Group's expected growth come at a high price?
Raw Data
DB:AINN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -201.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
29.8%per year
Germany Insurance Industry PEG Ratio Median Figure of 5 Publicly-Listed Insurance Companies 3.1x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What value do investors place on American International Group's assets?
Raw Data
DB:AINN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $69.33
NYSE:AIG Share Price * NYSE (2019-07-15) in USD $56.27
Germany Insurance Industry PB Ratio Median Figure of 6 Publicly-Listed Insurance Companies 1.07x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.74x
DB:AINN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AIG Share Price ÷ Book Value per Share (both in USD)

= 56.27 ÷ 69.33

0.81x

* Primary Listing of American International Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American International Group is good value based on assets compared to the DE Insurance industry average.
X
Value checks
We assess American International Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. American International Group has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AINN Future Performance

 How is American International Group expected to perform in the next 1 to 3 years based on estimates from 14 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
29.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American International Group expected to grow at an attractive rate?
  • American International Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • American International Group's earnings growth is expected to exceed the Germany market average.
  • American International Group's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:AINN Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:AINN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts 29.8%
DB:AINN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 0.7%
Germany Insurance Industry Earnings Growth Rate Market Cap Weighted Average 4.7%
Germany Insurance Industry Revenue Growth Rate Market Cap Weighted Average 5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:AINN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:AINN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 49,689 4,600 2
2020-12-31 49,231 4,413 7
2019-12-31 49,060 3,536 7
DB:AINN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 48,202 23 -249
2018-12-31 47,457 61 36
2018-09-30 47,382 239 -6,001
2018-06-30 47,652 111 -6,519
2018-03-31 48,640 1,580 -6,334
2017-12-31 49,550 -7,818 -6,088
2017-09-30 48,876 -8,232 -2,436
2017-06-30 49,975 -7,224 -239
2017-03-31 52,092 -6,985 562
2016-12-31 51,209 3,502 -759
2016-09-30 53,148 2,396 405
2016-06-30 53,116 2,955 -268

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American International Group's earnings are expected to grow significantly at over 20% yearly.
  • American International Group's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:AINN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from American International Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AINN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.63 6.12 5.03 4.00
2020-12-31 5.34 6.57 4.56 5.00
2019-12-31 4.01 4.20 3.71 4.00
DB:AINN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.28
2018-12-31 0.04
2018-09-30 -6.64
2018-06-30 -7.19
2018-03-31 -6.94
2017-12-31 -6.54
2017-09-30 -2.54
2017-06-30 -0.24
2017-03-31 0.54
2016-12-31 -0.70
2016-09-30 0.35
2016-06-30 -0.22

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • American International Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess American International Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
American International Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AINN Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare American International Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 DE Insurance industry average as it is not currently profitable.
Earnings and Revenue History
American International Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from American International Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:AINN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 48,202.00 -249.00 8,565.00
2018-12-31 47,457.00 36.00 8,806.00
2018-09-30 47,382.00 -6,001.00 8,900.00
2018-06-30 47,652.00 -6,519.00 8,770.00
2018-03-31 48,640.00 -6,334.00 8,679.00
2017-12-31 49,550.00 -6,088.00 8,694.00
2017-09-30 48,876.00 -2,436.00 9,121.00
2017-06-30 49,975.00 -239.00 9,380.00
2017-03-31 52,092.00 562.00 9,742.00
2016-12-31 51,209.00 -759.00 10,295.00
2016-09-30 53,148.00 405.00 10,600.00
2016-06-30 53,116.00 -268.00 11,447.00
2016-03-31 54,023.00 -407.00 12,041.00
2015-12-31 58,239.00 2,196.00 12,178.00
2015-09-30 58,989.00 4,727.00 12,463.00
2015-06-30 62,861.00 7,131.00 12,439.00
2015-03-31 63,378.00 8,390.00 13,063.00
2014-12-31 63,587.00 7,579.00 12,592.00
2014-09-30 65,398.00 8,856.00 23,453.00
2014-06-30 64,652.00 8,854.00 20,302.00
2014-03-31 66,942.00 8,524.00 16,588.00
2013-12-31 67,741.00 9,001.00 13,299.00
2013-09-30 71,720.00 3,355.00
2013-06-30 72,498.00 2,986.00
2013-03-31 70,293.00 2,426.00
2012-12-31 71,021.00 3,437.00 13,013.00
2012-09-30 63,190.00 29,133.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • American International Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • American International Group used its assets less efficiently than the DE Insurance industry average last year based on Return on Assets.
  • 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.
X
Past performance checks
We assess American International Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
American International Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AINN Health

 How is American International Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up American International Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of American International Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from American International Group Company Filings, last reported 3 months ago.

DB:AINN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 62,093.00 35,776.00 13,447.00
2018-12-31 57,309.00 34,540.00 12,547.00
2018-09-30 59,177.00 34,594.00 11,576.00
2018-06-30 61,797.00 33,784.00 19,127.00
2018-03-31 63,357.00 33,619.00 16,672.00
2017-12-31 65,708.00 31,640.00 12,748.00
2017-09-30 73,012.00 31,039.00 12,208.00
2017-06-30 74,324.00 31,812.00 14,611.00
2017-03-31 74,667.00 30,747.00 12,991.00
2016-12-31 76,858.00 30,912.00 14,170.00
2016-09-30 89,165.00 32,277.00 13,243.00
2016-06-30 90,537.00 33,329.00 14,118.00
2016-03-31 89,081.00 31,952.00 12,413.00
2015-12-31 90,210.00 29,249.00 11,761.00
2015-09-30 99,619.00 30,719.00 13,977.00
2015-06-30 104,642.00 30,360.00 15,802.00
2015-03-31 108,367.00 31,999.00 13,784.00
2014-12-31 107,272.00 31,217.00 13,001.00
2014-09-30 108,983.00 36,223.00 19,785.00
2014-06-30 108,581.00 38,414.00 22,715.00
2014-03-31 104,420.00 39,508.00 20,148.00
2013-12-31 101,111.00 41,693.00 23,858.00
2013-09-30 99,515.00 42,231.00 48,206.00
2013-06-30 98,235.00 42,614.00 46,524.00
2013-03-31 100,571.00 45,266.00 49,114.00
2012-12-31 99,003.00 48,500.00 29,959.00
2012-09-30 102,573.00 73,748.00 49,100.00
  • American International Group's level of debt (57.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (37.8% vs 57.6% today).
  • Debt is not well covered by operating cash flow (0.1%, less than 20% of total debt).
  • American International Group is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess American International Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. American International Group has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AINN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.27%
Current annual income from American International Group dividends. Estimated to be 2.48% next year.
If you bought €2,000 of American International Group shares you are expected to receive €45 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • American International Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.48%).
  • American International Group's dividend is below the markets top 25% of dividend payers in Germany (3.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:AINN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Germany Insurance Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:AINN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.55 8.00
2020-12-31 1.40 13.00
2019-12-31 1.30 13.00
DB:AINN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-06 1.280 2.423
2019-02-13 1.280 2.896
2018-10-31 1.280 3.082
2018-08-02 1.280 2.503
2018-05-02 1.280 2.368
2018-02-08 1.280 2.287
2017-11-02 1.280 2.106
2017-08-02 1.280 2.060
2017-05-03 1.280 2.021
2017-02-14 1.280 2.065
2016-11-02 1.280 1.978
2016-08-02 1.280 2.159
2016-05-02 1.280 2.339
2016-02-11 1.280 2.396
2015-11-02 1.120 1.895
2015-08-03 1.120 1.872
2015-04-30 0.500 0.816
2015-02-12 0.500 0.898
2014-11-03 0.500 0.934
2014-08-04 0.500 0.934
2014-05-05 0.500 0.923
2014-02-13 0.500 0.994
2013-10-31 0.400 0.807
2013-08-01 0.400 0.816
2010-05-07 0.000 0.000
2010-02-26 0.000 0.000
2009-11-06 0.000 0.000
2009-08-07 0.000 0.000
2009-05-07 0.000 0.000
2009-03-02 0.000 0.000
2008-09-23 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of American International Group's earnings are paid to the shareholders as a dividend.
  • 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 (3.7x coverage).
X
Income/ dividend checks
We assess American International Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can American International Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American International Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AINN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Brian Duperreault
COMPENSATION $20,854,669
AGE 72
TENURE AS CEO 2.2 years
CEO Bio

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 and President of Hamilton Insurance Group, Ltd until February 15, 2017 and its Chairman from February 17, 2016 to May 15, 2017. Mr. Duperreault has insurance expertise and an outstanding record of investment expertise. He served as the Chief Executive Officer and President of Marsh & McLennan Companies, Inc. since January 30, 2008 until January 1, 2013. He served as the Chief Financial Officer of Marsh & McLennan Companies, Inc. from October 2008 November 2008. He served as the Chairman of Chubb Limited (alternative name ACE Limited) from October 1994 to July 2006, Chief Executive Officer from October 1994 to May 27, 2004, and President from October 1994 to November 1999. Mr. Duperreault served with American International Group (insurance) since 1973. He served in various senior executive positions with American Insurance Group (AIG) and its affiliates from 1978 to September 1994, as an Executive Vice President of Foreign General Insurance and Chairman and Chief Executive Officer of American International Underwriters Inc. (AIU) from April 1994 to September 1994. He served as the President of AIU from 1991 to April 1994 and Chief Executive Officer of AIG affiliates in Japan and Korea from 1989 to 1991. He has run businesses very successfully in all parts of the insurance industry from Marsh & McLennan to ACE in Bermuda. He served as Provisional Director of Assured Guaranty Ltd., since August 2003. He serves as the Chairman of Ace Insurance Group. He serves as the Chairman of the Board of Trustees at Bermuda Institute Of Ocean Sciences (Bios) Inc. Mr. Duperreault serves as Chairman of the Board of Blue Marble Microinsurance and served as its Vice Chairman. He serves as the Chairman of Centre of Philanthropy. He serves as Chairman of the Board of Overseers of the School of Risk Management of St. John’s University. He served as the Chairman of the Board of Tyco International plc since March 29 2016 until September 2, 2016. He served as Chairman and Director of The Bank of NT Butterfield & Son Limited (also known as Bank Butterfield & Son Ltd.) of Butterfield Bank (Barbados) Limited since 2007. He served as the Chairman and Director of The International Insurance Society Inc. He served as Chairman of ACE Tempest Re of ACE Limited from March 1997 to June 2003. Mr. Duperreault serves as Vice Chairman of the Board of the IESE Business School, the Insurance Information Institute and the Bermuda Institute of Ocean Sciences. He served as Deputy Chairman of ACE Tempest Re since June 2003. He has been a Director of Tyco Ireland Ltd. since November 17, 2014. Mr. Duperreault has been a Director of Estchester Specialty since 1998; CAT Ltd. since 1998; Tarquin Plc since 1998; CIGNA P&C and Capital Re Corporation since 1999. He serves as a Director of Integrated Finance Limited. He was Independent Director at Johnson Controls International plc since March 25, 2004 until March 07, 2019. He has been Independent Director of Tyco International Finance S.A. since March 2004. He served as a Director at Hamilton Insurance Group, Ltd. until May 15, 2017. He serves as a Member of The American Academy of Actuaries and a Member of the Board of Trustees of Saint Joseph's University. He serves as a Member of the Board of Trustees of The Peter J. Tobin College of Business, School of Risk Management, Insurance and Actuarial Science, St. Johns University. He served as an Independent Director of Tyco International plc since March 2004 and served as its Lead Director since September 28, 2012 until March 29, 2016. He served as a Director at Chubb Market Company Limited. He served as a Director of ACE Limited from October 1994 to January 29, 2008, ACE Global Markets Ltd, and Marsh & McLennan Companies, Inc. since January 2008 until January 1, 2013. He served as a Director at ACE Tempest Re and The International Insurance Society Inc. and Assured Guaranty Corp. He served as a Director of The Partnership for New York City, Inc. He served as a Director of Bermuda Monetary Authority. He was a Member of the Association of The Metropolitan Opera, New York. He is well known in Bermuda and the international insurance sector. Mr. Duperreault holds a B.S. in Mathematics from Saint Joseph's University, Philadelphia.

CEO Compensation
  • Brian's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Brian's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the American International Group management team in years:

2.2
Average Tenure
56
Average Age
  • The tenure for the American International Group management team is about average.
Management Team

Brian Duperreault

TITLE
COMPENSATION
$21M
AGE
72
TENURE
2.2 yrs

Mark Lyons

TITLE
Executive VP
COMPENSATION
$5M
AGE
62
TENURE
0.6 yrs

Peter Zaffino

TITLE
Global COO & CEO of General Insurance
COMPENSATION
$13M
AGE
52

Doug Dachille

TITLE
Executive VP & Chief Investment Officer
COMPENSATION
$10M
AGE
55
TENURE
3.8 yrs

Kevin Hogan

TITLE
Executive VP and CEO of Life & Retirement
COMPENSATION
$9M
AGE
57
TENURE
5.8 yrs

Jon Wismer

TITLE
Senior VP
TENURE
0.9 yrs

John Repko

TITLE
Executive VP & Chief Information Officer
AGE
56
TENURE
0.8 yrs

Liz Werner

TITLE
Head of Investor Relations and Vice President
TENURE
8.5 yrs

Karen Nelson

TITLE
Chief Compliance Officer
TENURE
9.5 yrs

Lucy Fato

TITLE
Executive VP
AGE
53
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the American International Group board of directors in years:

8.2
Average Tenure
68
Average Age
  • The tenure for the American International Group board of directors is about average.
Board of Directors

Doug Steenland

TITLE
Independent Chairman of the Board
COMPENSATION
$564K
AGE
68
TENURE
4 yrs

Brian Duperreault

TITLE
COMPENSATION
$21M
AGE
72
TENURE
2.2 yrs

Anthony Baldwin

TITLE
Chief Executive of AIG's UK Entity

Suzanne Nora Johnson

TITLE
Director
COMPENSATION
$314K
AGE
62
TENURE
11 yrs

Christopher Lynch

TITLE
Director
COMPENSATION
$324K
AGE
61
TENURE
10.1 yrs

W. Cornwell

TITLE
Director
COMPENSATION
$344K
AGE
71
TENURE
8.2 yrs

John Fitzpatrick

TITLE
Director
COMPENSATION
$344K
AGE
62
TENURE
8.2 yrs

Jerry Jurgensen

TITLE
Director
COMPENSATION
$354K
AGE
67
TENURE
6.2 yrs

Henry Miller

TITLE
Director
COMPENSATION
$314K
AGE
73
TENURE
9.3 yrs

Linda Mills

TITLE
Director
COMPENSATION
$314K
AGE
69
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by American International Group individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
23. May 19 Buy Therese Vaughan Individual 23. May 19 23. May 19 1,000 €46.31 €46,306
X
Management checks
We assess American International Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. American International Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AINN News

Simply Wall St News

AINN Company Info

Description

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 general liability, environmental, commercial automobile liability, workers’ compensation, excess casualty, and crisis management insurance products, as well as various risk-sharing and other customized structured programs; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, surety, crop, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officer’s liability, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance. In addition, this segment offers personal auto and property insurance, voluntary and sponsor-paid personal accident, and supplemental health products; extended warranty insurance products; and travel insurance products. Its Life and Retirement segment offers variable annuities, fixed index and fixed annuities, and retail mutual funds; group mutual funds, fixed annuities, and variable annuities, as well as individual annuity and investment products, and financial planning and advisory services; and term life and universal life insurance. This segment also provides stable value wrap products, and structured settlement and pension risk transfer annuities; and corporate- and bank-owned life insurance and guaranteed investment contracts. This segment sells its products through independent marketing organizations, independent insurance agents, financial advisors, direct marketing, banks, wirehouses, and broker-dealers. The company’s Legacy Portfolio segment offers legacy insurance products. American International Group, Inc. was founded in 1919 and is headquartered in New York, New York.

Details
Name: American International Group, Inc.
AINN
Exchange: DB
Founded: 1919
$43,479,214,758
869,753,584
Website: http://www.aig.com
Address: American International Group, Inc.
175 Water Street,
New York,
New York, 10038,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AIG Common Stock New York Stock Exchange US USD 02. Jan 1969
DB AINN Common Stock Deutsche Boerse AG DE EUR 02. Jan 1969
XTRA AINN Common Stock XETRA Trading Platform DE EUR 02. Jan 1969
LSE 0OAL Common Stock London Stock Exchange GB USD 02. Jan 1969
SWX AIG Common Stock SIX Swiss Exchange CH CHF 02. Jan 1969
WBAG AIG Common Stock Wiener Boerse AG AT EUR 02. Jan 1969
SNSE AIG Common Stock Santiago Stock Exchange CL USD 02. Jan 1969
BMV AIG * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jan 1969
BOVESPA AIGB34 BDR EACH REPR 1 COM USD2.50 Bolsa de Valores de Sao Paulo BR BRL 03. Oct 2016
BASE AIG CEDEAR EACH 5 REPR 1 ORD USD2.50 Buenos Aires Stock Exchange AR ARS 12. Sep 2000
NYSE AIG.PRA 5.85 NCUM PFD A New York Stock Exchange US USD 08. Mar 2019
Number of employees
Current staff
Staff numbers
49,600
American International Group employees.
Industry
Multi-line Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/15 20:36
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.