NYSE: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

Slightly overvalued 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

0.6%

AIG

0.1%

US Insurance

0.5%

US Market


1 Year Return

21.3%

AIG

13.8%

US Insurance

6.8%

US Market

Return vs Industry: AIG exceeded the US Insurance industry which returned 13.8% over the past year.

Return vs Market: AIG exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

AIGIndustryMarket
7 Day0.6%0.1%0.5%
30 Day-5.0%-1.8%-0.8%
90 Day-3.1%-1.6%-0.9%
1 Year24.7%21.3%16.6%13.8%9.2%6.8%
3 Year-2.9%-9.6%44.6%33.5%45.6%36.2%
5 Year17.0%5.4%69.6%49.4%63.2%45.4%

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

Valuation

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

26.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIG ($54.55) is trading below our estimate of fair value ($74.08)

Significantly Below Fair Value: AIG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AIG is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: AIG is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AIG is good value based on its PB Ratio (0.7x) compared to the US 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?

26.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AIG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AIG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: AIG's revenue (0.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: AIG's revenue (0.5% per year) is forecast to grow slower than 20% 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 (7.4%).


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

Earnings Trend: AIG is unprofitable, and losses have increased over the past 5 years at a rate of -71% per year.

Accelerating Growth: Unable to compare AIG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AIG is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (1.4%).


Return on Equity

High ROE: AIG has a negative Return on Equity (0.83%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AIG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AIG is currently unprofitable, so its Return on Capital Employed is negative.


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: AIG has a low level of unsold assets or inventory.

Debt Coverage by Assets: AIG's debt is covered by short term assets (assets are 2.055020x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.35%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years2.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AIG's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: AIG's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: AIG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AIG's dividends in 3 years are forecast to be well covered by earnings (26.5% payout ratio).


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?

2.4yrs

Average management tenure


CEO

Brian Duperreault (72yo)

2.4yrs

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

Compensation vs. Market: Brian has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.4yrs

Average Tenure

56yo

Average Age

Experienced Management: AIG's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

8.4yrs

Average Tenure

68yo

Average Age

Experienced Board: AIG's board of directors are considered experienced (8.4 years average tenure).


Insider Trading

Insider Buying: AIG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$422,80014 Aug 19
Seraina Macia
EntityIndividual
Shares7,550
Max PriceUS$56.00
BuyUS$51,71023 May 19
Therese Vaughan
EntityIndividual
Shares1,000
Max PriceUS$51.71

Ownership Breakdown


Management Team

  • Brian Duperreault (72yo)

    • Tenure: 2.4yrs
    • Compensation: US$20.85m
  • John Repko (56yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.1yrs
  • Kevin Hogan (57yo)

    Executive VP and CEO of Life & Retirement

    • Tenure: 6yrs
    • Compensation: US$9.12m
  • Liz Werner

    Head of Investor Relations & VP

    • Tenure: 8.8yrs
  • Mark Lyons (62yo)

    Executive VP & CFO

    • Tenure: 0.8yrs
    • Compensation: US$4.76m
  • Lucy Fato (53yo)

    Executive VP & General Counsel

    • Tenure: 2yrs
  • Peter Zaffino (52yo)

    Global COO & CEO of General Insurance

    • Tenure: 0yrs
    • Compensation: US$12.62m
  • Doug Dachille (55yo)

    Executive VP & Chief Investment Officer

    • Tenure: 4.1yrs
    • Compensation: US$9.71m
  • Karen Nelson

    Chief Compliance Officer

    • Tenure: 9.8yrs
  • Jon Wismer

    Senior VP

    • Tenure: 1.2yrs

Board Members

  • Henry Miller (73yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$314.11k
  • Jerry Jurgensen (67yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$354.11k
  • W. Cornwell (71yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$344.11k
  • Brian Duperreault (72yo)

    • Tenure: 2.4yrs
    • Compensation: US$20.85m
  • Doug Steenland (68yo)

    Independent Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$564.11k
  • Suzanne Nora Johnson (62yo)

    Independent Director

    • Tenure: 11.3yrs
    • Compensation: US$314.11k
  • John Fitzpatrick (62yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$344.11k
  • Linda Mills (69yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$314.11k
  • Anthony Baldwin

    Chief Executive of AIG's UK Entity

    • Tenure: 0yrs
  • Chris Lynch (61yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: US$324.11k

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: NYSE
  • Founded: 1919
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$47.453b
  • Shares outstanding: 869.91m
  • 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
AIGSWX (SIX Swiss Exchange)YesCommon StockCHCHFJan 1969
AIGNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
AINNDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0OALLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
AIGWBAG (Wiener Boerse AG)YesCommon StockATEURJan 1969
AIG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969
AINNXTRA (XETRA Trading Platform)YesCommon StockDEEURJan 1969
AIGSNSE (Santiago Stock Exchange)YesCommon StockCLUSDJan 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 NCUM 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 Analysis2019/10/21 23:31
End of Day Share Price2019/10/21 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.