American International Group
American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. The last earnings update was 15 days ago. More info.
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AIG Share Price and Events
7 Day Returns
1 Year Returns
AIG Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| American International Group (AIG) | 1.3% | 14.1% | 22.1% | -3% | -9.6% | -1.8% |
| US Insurance | 2.2% | 3.3% | 6.1% | 7.1% | 32.9% | 46.2% |
| US Market | 1.6% | -1.7% | 2.1% | 2.6% | 38.5% | 41.4% |
1 Year Return vs Industry and Market
- AIG underperformed the Insurance industry which returned 7.1% over the past year.
- AIG underperformed the Market in United States of America which returned 2.6% over the past year.
Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for American International Group.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 11 analysts.
= Stable Book Value * Return on Equity = $76.33 * 7.4% |
$5.61 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 11 analysts. | $76.33 |
| Discount Rate (Cost of Equity) | See below | 9.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Insurance Unlevered Beta | Simply Wall St/ S&P Global | 0.74 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.735 (1 + (1- 21%) (80.15%)) |
1.134 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.13 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.134 * 5.96%) |
9.49% |
Discounted Cash Flow Calculation for NYSE:AIG 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.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (7.4% – 9.49%) * $76.33) |
$-1.63 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $-1.63 / (9.49% - 2.73%) |
$-24.16 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $76.33 + $-24.16 |
$52.16 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $52.16 |
| Current discount | Discount to share price of
$52.50
= -1 x ($52.50 - $52.16) / $52.16 |
-0.6% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of American International Group is above its future cash flow value.
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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $-0.28 |
| NYSE:AIG Share Price ** | NYSE (2019-05-21) in USD | $52.5 |
| United States of America Insurance Industry PE Ratio | Median Figure of 90 Publicly-Listed Insurance Companies | 16.89x |
| United States of America Market PE Ratio | Median Figure of 3,087 Publicly-Listed Companies | 17.74x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of American International Group.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:AIG Share Price ÷ EPS (both in USD) = 52.5 ÷ -0.28 |
-187.71x |
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 US Insurance industry average.
- American International Group is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does
American International Group's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | -187.71x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts |
33.4%per year |
| United States of America Insurance Industry PEG Ratio | Median Figure of 67 Publicly-Listed Insurance Companies | 1.54x |
| United States of America Market PEG Ratio | Median Figure of 2,123 Publicly-Listed Companies | 1.53x |
*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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $69.33 |
| NYSE:AIG Share Price * | NYSE (2019-05-21) in USD | $52.5 |
| United States of America Insurance Industry PB Ratio | Median Figure of 119 Publicly-Listed Insurance Companies | 1.2x |
| United States of America Market PB Ratio | Median Figure of 5,202 Publicly-Listed Companies | 1.84x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:AIG Share Price ÷ Book Value per Share (both in USD) = 52.5 ÷ 69.33 |
0.76x |
* 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 US Insurance industry average.
Value checks
We assess American International Group's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check) American International Group has a total score of 1/6, 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.
Future Performance
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!
Earnings growth vs Low Risk Savings
- American International Group's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- American International Group's earnings growth is expected to exceed the United States of America market average.
- American International Group's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:AIG Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts | 33.4% |
| NYSE:AIG Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts | 1% |
| United States of America Insurance Industry Earnings Growth Rate | Market Cap Weighted Average | 9.7% |
| United States of America Insurance Industry Revenue Growth Rate | Market Cap Weighted Average | 3.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.8% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.3% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month ago) | See Below |
| Future Estimates | Average of up to 14 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 50,362 | 4,443 | 1 | |
| 2020-12-31 | 49,218 | 4,355 | 7 | |
| 2019-12-31 | 49,034 | 3,490 | 7 |
| 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (1 month 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 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 5.81 | 6.12 | 5.60 | 3.00 |
| 2020-12-31 | 5.25 | 6.57 | 4.66 | 7.00 |
| 2019-12-31 | 4.51 | 5.89 | 3.77 | 7.00 |
| 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%).
Future performance checks
We assess American International Group's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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.
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
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 US Insurance industry average as it is not currently profitable.
Earnings and Revenue History
All data from American International Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 | ||
| 2012-06-30 | 59,188.00 | 23,545.00 |
*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 US 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.
Past performance checks
We assess American International Group's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
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.
- 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
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.9x 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.
All data from American International Group Company Filings, last reported 1 month ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 62,093.00 | 36,599.00 | 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 |
| 2012-06-30 | 105,641.00 | 75,397.00 | 56,619.00 |
- American International Group's level of debt (58.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (37.8% vs 58.9% 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.
Financial health checks
We assess American International Group's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) American International Group has a total score of 0/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
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
If you bought
$2,000 of
American International Group
shares you are expected to receive
$49
in your first year as a dividend.
Dividend Amount
- American International Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
- American International Group's dividend is below the markets top 25% of dividend payers in United States of America (3.72%).
Upcoming dividend payment
Purchase American International Group before the 'Buy Limit' to receive their next dividend payment.
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.
| 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 |
| United States of America Insurance Industry Average Dividend Yield | Market Cap Weighted Average of 80 Stocks | 2.2% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 1.57 | 6.00 |
| 2020-12-31 | 1.40 | 13.00 |
| 2019-12-31 | 1.30 | 13.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-05-06 | 1.280 | 2.506 |
| 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 |
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.
Income/ dividend checks
We assess American International Group's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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.
Management
CEO
| COMPENSATION | $43,086,861 |
| AGE | 71 |
| TENURE AS CEO | 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
- Insufficient data for Brian to compare compensation growth.
- Brian's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the American International Group management team in years:
- The tenure for the American International Group management team is about average.
Management Team
Brian Duperreault
President
$43M
71
2 yrs
Peter Zaffino
Executive VP
$18M
51
Doug Dachille
Executive VP & Chief Investment Officer
$14M
54
3.7 yrs
Kevin Hogan
Executive VP and CEO of Life & Retirement
$14M
56
5.6 yrs
Mark Lyons
Executive VP
61
0.4 yrs
Jon Wismer
Senior VP
0.8 yrs
John Repko
Executive VP & Chief Information Officer
55
0.7 yrs
Liz Werner
Head of Investor Relations and Vice President
8.3 yrs
Karen Nelson
Chief Compliance Officer
9.3 yrs
Lucy Fato
Executive VP
52
1.6 yrs
Board of Directors Tenure
Average tenure and age of the American International Group board of directors in years:
- The tenure for the American International Group board of directors is about average.
Board of Directors
Doug Steenland
Independent Chairman of the Board
$540K
67
3.8 yrs
Brian Duperreault
President
$43M
71
2 yrs
Christopher Lynch
Director
$290K
60
9.9 yrs
Ron Rittenmeyer
Director
$300K
71
9.1 yrs
W. Cornwell
Director
$320K
70
8 yrs
John Fitzpatrick
Director
$320K
61
8 yrs
Jerry Jurgensen
Director
$320K
66
6 yrs
Theresa Stone
Director
$310K
74
6 yrs
Suzanne Nora Johnson
Director
$300K
61
10.8 yrs
Henry Miller
Director
$290K
72
9.1 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
Management checks
We assess American International Group's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
News
Simply Wall St News
When Should You Buy American International Group Inc (NYSE:AIG)?
Let's talk about the popular American International Group Inc (NYSE:AIG). … had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of $51.94 to $56.31? … Let’s take a look at American International Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleIs American International Group Inc (NYSE:AIG) A Smart Pick For Income Investors?
Over the past 10 years, American International Group Inc (NYSE:AIG) has returned an average of 1.00% per year to shareholders in terms of dividend yield. … Does American International Group tick all the boxes of a great dividend stock? … View out our latest analysis for American International Group
Simply Wall St - – Full articleAmerican International Group Inc (NYSE:AIG): What You Have To Know Before Buying For The Upcoming Dividend
Have you been keeping an eye on American International Group Inc's (NYSE:AIG) upcoming dividend of $0.32 per share payable on the 28 June 2018? … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I take a deeper dive into American International Group's latest financial data to analyse its dividend attributes. … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
Simply Wall St - – Full articleWho Are The Major Shareholders Of American International Group Inc (NYSE:AIG)?
In this article, I'm going to take a look at American International Group Inc’s (NYSE:AIG) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. … Next Steps: The company's high institutional ownership makes margin of safety a very important consideration to existing investors since long bull and bear trends often emerge when these big-ticket investors see a change in long-term potential of the company.
Simply Wall St - – Full articleAmerican International Group Inc (NYSE:AIG): Risks You Need To Consider Before Buying
If you are looking to invest in American International Group Inc’s (NYSE:AIG), or currently own the stock, then you need to understand its beta in order to understand how it can affect the risk of your portfolio. … How AIG's assets could affect its beta An asset-heavy company tends to have a higher beta because the risk associated with running fixed assets during a downturn is highly expensive. … As a result, the company may be less volatile relative to broad market movements, compared to a company of similar size but higher proportion of fixed assets.
Simply Wall St - – Full articleIs American International Group Inc (NYSE:AIG) Worth $55.4 Based On Intrinsic Value?
NYSE:AIG Intrinsic Value Apr 26th 18 Deriving AIG's Intrinsic Value The main assumption for this model is that equity value is how much the firm can earn, over and above its cost of equity, given the level of equity it has in the company at the moment. … The returns above the cost of equity is known as excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (8.14% – 11.45%) * $78.05 = $-2.58 Excess Return Per Share is used to calculate the terminal value of AIG, which is how much the business is expected to continue to generate over the upcoming years, in perpetuity. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $-2.58 / (11.45% – 2.47%) = $-28.77 Combining these components gives us AIG's intrinsic value per share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $78.05 + $-28.77 = $49.29 Given AIG's current share price of $55.4, AIG is currently trading in-line with its true value.
Simply Wall St - – Full articleShould You Buy American International Group Inc (NYSE:AIG) At $54.52?
Let’s take a look at American International Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. … According to my valuation model, American International Group seems to be fairly priced at around 7% above my intrinsic value, which means if you buy American International Group today, you’d be paying a relatively reasonable price for it. … However, with a relatively muted revenue growth of 0.015% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for American International Group, at least in the short term.
Simply Wall St - – Full articleIs Buying American International Group Inc (NYSE:AIG) For Its Upcoming $0.32 Dividend A Good Choice?
View our latest analysis for American International Group How I analyze a dividend stock If you are a dividend investor, you should always assess these five key metrics: Is it the top 25% annual dividend yield payer? … NYSE:AIG Historical Dividend Yield Mar 7th 18 Does American International Group pass our checks? … American International Group has a negative payout ratio, meaning that the company is not yet profitable and is paying dividend by dipping into its retained earnings.
Simply Wall St - – Full articleAmerican International Group Inc (NYSE:AIG): Are Analysts Optimistic?
Many investors are wondering the rate at which AIG will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for AIG’s growth and when analysts expect the company to become profitable. … NYSE:AIG Past Future Earnings Feb 28th 18 Underlying developments driving AIG’s growth isn’t the focus of this broad overview, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment. … Next Steps: There are too many aspects of AIG to cover in one brief article, but the key fundamentals for the company can all be found in one place – AIG’s company page on Simply Wall St.
Simply Wall St - – Full articleFebruary Insights Into Financial Stocks: American International Group Inc (NYSE:AIG)
Today, I will analyse the industry outlook, and also determine whether American International Group is a laggard or leader relative to its financial sector peers. … See our latest analysis for American International Group What’s the catalyst for American International Group's sector growth? … As the company trails the rest of the industry in terms of growth, American International Group may also be a cheaper stock relative to its peers.
Simply Wall St - – Full articleCompany 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. |
| AIG | |
| Exchange: | NYSE |
| Founded: | 1919 |
| $45,662,063,160 | |
| 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
Industry
| Multi-line Insurance | |
| Insurance |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/05/22 03:19 |
| End of day share price update: | 2019/05/21 00:00 |
| Last estimates confirmation: | 2019/05/21 |
| 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.
