LSE:0OAL

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 Analysis

Very undervalued with proven track record.


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: 0OAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.8%

0OAL

-12.6%

GB Insurance

-2.2%

GB Market


1 Year Return

-54.4%

0OAL

-38.7%

GB Insurance

-25.9%

GB Market

Return vs Industry: 0OAL underperformed the UK Insurance industry which returned -38.7% over the past year.

Return vs Market: 0OAL underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

0OALIndustryMarket
7 Day-7.8%-12.6%-2.2%
30 Day-52.0%-24.9%-20.3%
90 Day-60.1%-35.5%-29.5%
1 Year-53.2%-54.4%-31.8%-38.7%-22.2%-25.9%
3 Yearn/a-26.9%-39.7%-16.1%-26.6%
5 Yearn/a-21.2%-41.1%-4.6%-26.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0OAL ($20.22) is trading below our estimate of fair value ($109.14)

Significantly Below Fair Value: 0OAL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0OAL is good value based on its PE Ratio (5.5x) compared to the Insurance industry average (11.9x).

PE vs Market: 0OAL is good value based on its PE Ratio (5.5x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: 0OAL is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 0OAL is good value based on its PB Ratio (0.3x) compared to the GB Insurance industry average (1.2x).


Next Steps

Future Growth

How is American International Group forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0OAL's forecast earnings growth (10.8% per year) is above the savings rate (0.5%).

Earnings vs Market: 0OAL's earnings (10.8% per year) are forecast to grow slower than the UK market (15.4% per year).

High Growth Earnings: 0OAL's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0OAL's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: 0OAL's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0OAL's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

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

-49.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0OAL has high quality earnings.

Growing Profit Margin: 0OAL's current net profit margins (6.6%) are higher than last year (0.08%).


Past Earnings Growth Analysis

Earnings Trend: 0OAL's earnings have declined by -49.1% per year over the past 5 years.

Accelerating Growth: 0OAL's earnings growth over the past year (9005.6%) exceeds its 5-year average (-49.1% per year).

Earnings vs Industry: 0OAL earnings growth over the past year (9005.6%) exceeded the Insurance industry 4.5%.


Return on Equity

High ROE: 0OAL's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is American International Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0OAL has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0OAL's debt is covered by short term assets (assets are 2x debt).


Financial Institutions Analysis

Asset Level: 0OAL's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0OAL has a sufficient allowance for bad loans.

Low Risk Liabilities: 0OAL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0OAL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0OAL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0OAL has an appropriate level of bad loans.


Next Steps

Dividend

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

6.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 0OAL's dividend (6.26%) is higher than the bottom 25% of dividend payers in the UK market (2.66%).

High Dividend: 0OAL's dividend (6.26%) is low compared to the top 25% of dividend payers in the UK market (7.42%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0OAL has been paying a dividend for less than 10 years.

Growing Dividend: 0OAL'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 (34.2%), 0OAL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0OAL's dividends in 3 years are forecast to be well covered by earnings (27.2% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Brian Duperreault (72yo)

2.92s

Tenure

US$20,854,669

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 ($USD20.85M) is above average for companies of similar size in the UK market ($USD5.59M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Brian Duperreault
CEO & Director2.92yrsUS$20.85m0.013% $2.4m
Peter Zaffino
President0.25yrUS$12.62m0.0016% $285.5k
Mark Lyons
Executive VP & CFO1.33yrsUS$4.76mno data
Douglas Dachille
Executive VP & Chief Investment Officer4.58yrsUS$9.71m0.0095% $1.7m
Kevin Hogan
Executive VP and CEO of Life & Retirement6.5yrsUS$9.12m0.019% $3.4m
Elias Habayeb
Senior VP0.083yrno data0.0016% $290.8k
John Repko
Executive VP & Chief Information Officer1.58yrsno datano data
Elizabeth Werner
Head of Investor Relations & VP9.25yrsno datano data
Karen Nelson
Chief Compliance Officer10.25yrsno datano data
Luciana Fato
Executive VP & General Counsel2.5yrsno data0.00088% $155.1k

2.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: 0OAL's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Brian Duperreault
CEO & Director2.92yrsUS$20.85m0.013% $2.4m
Henry Miller
Independent Director10yrsUS$314.11kno data
William Jurgensen
Independent Director6.92yrsUS$354.11k0.0017% $306.6k
W. Cornwell
Independent Director8.92yrsUS$344.11kno data
Thomas Motamed
Independent Director1.25yrsno data0.0029% $511.0k
Douglas Steenland
Independent Chairman of the Board4.75yrsUS$564.11k0.00056% $98.7k
Suzanne Nora Johnson
Independent Director11.75yrsUS$314.11kno data
John Fitzpatrick
Independent Director8.92yrsUS$344.11k0.000010% $1.8k
Linda Mills
Independent Director4.75yrsUS$314.11kno data
Christopher Lynch
Independent Director10.83yrsUS$324.11k0.00037% $65.2k

7.9yrs

Average Tenure

68.5yo

Average Age

Experienced Board: 0OAL's board of directors are considered experienced (7.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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: 0OAL
  • Exchange: LSE
  • Founded: 1919
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$17.622b
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 21:31
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
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.