| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 3/6 |
| Financial Health | 1/6 |
| Dividends | 3/6 |
AIG Overview
American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally.
American International Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$53.81 |
| 52 Week High | US$25.57 |
| 52 Week Low | US$55.79 |
| Beta | 1.39 |
| 1 Month Change | 1.60% |
| 3 Month Change | 14.86% |
| 1 Year Change | 92.25% |
| 3 Year Change | -1.57% |
| 5 Year Change | -8.38% |
| Change since IPO | -69.74% |
Recent News & Updates
AIG: One Step Closer Toward A Life & Retirement IPO
AIG is selling a 9.9% stake in its Life & Retirement unit to Blackstone for $2.2bn. With Blackstone also playing a strategic asset management role, the consideration will entail a book value premium. Given the substantial capital return optionality to be unlocked, the current book value discount seems unwarranted.
Shareholder Returns
| AIG | US Insurance | US Market | |
|---|---|---|---|
| 7D | -1.2% | -0.7% | -0.6% |
| 1Y | 92.2% | 35.9% | 33.8% |
Return vs Industry: AIG exceeded the US Insurance industry which returned 35.9% over the past year.
Return vs Market: AIG exceeded the US Market which returned 33.8% over the past year.
Price Volatility
| AIG volatility | |
|---|---|
| AIG Beta | 1.39 |
| Industry Beta | 0.97 |
| Market Beta | 1 |
Stable Share Price: AIG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AIG's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1919 | 45,000 | Peter Zaffino | https://www.aig.com |
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, casualty, and crisis management insurance products; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, crop, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officers, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance.
American International Group Fundamentals Summary
| AIG fundamental statistics | |
|---|---|
| Market Cap | US$46.02b |
| Earnings (TTM) | US$4.18b |
| Revenue (TTM) | US$44.34b |
11.0x
P/E Ratio1.0x
P/S RatioIs AIG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AIG income statement (TTM) | |
|---|---|
| Revenue | US$44.34b |
| Cost of Revenue | US$30.48b |
| Gross Profit | US$13.86b |
| Expenses | US$9.68b |
| Earnings | US$4.18b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.82 |
| Gross Margin | 31.25% |
| Net Profit Margin | 9.42% |
| Debt/Equity Ratio | 53.4% |
How did AIG perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield27%
Payout RatioValuation
Is American International Group undervalued compared to its fair value and its price relative to the market?
42.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AIG ($53.81) is trading below our estimate of fair value ($93.95)
Significantly Below Fair Value: AIG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AIG is poor value based on its PE Ratio (11x) compared to the US Insurance industry average (9.5x).
PE vs Market: AIG is good value based on its PE Ratio (11x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: AIG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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 (1.1x).
Future Growth
How is American International Group forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-1.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIG's earnings are forecast to decline over the next 3 years (-1.4% per year).
Earnings vs Market: AIG's earnings are forecast to decline over the next 3 years (-1.4% per year).
High Growth Earnings: AIG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AIG's revenue (2.5% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: AIG's revenue (2.5% 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 (8.1%).
Past Performance
How has American International Group performed over the past 5 years?
2.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AIG has high quality earnings.
Growing Profit Margin: AIG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: AIG has become profitable over the past 5 years, growing earnings by 2.2% per year.
Accelerating Growth: AIG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: AIG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Insurance industry (76%).
Return on Equity
High ROE: AIG's Return on Equity (6.5%) is considered low.
Financial Health
How is American International Group's financial position?
Financial Position Analysis
Short Term Liabilities: AIG's short term assets ($111.4B) do not cover its short term liabilities ($151.7B).
Long Term Liabilities: AIG's short term assets ($111.4B) do not cover its long term liabilities ($379.7B).
Debt to Equity History and Analysis
Debt Level: AIG's debt to equity ratio (53.4%) is considered high.
Reducing Debt: AIG's debt to equity ratio has increased from 36.8% to 53.4% over the past 5 years.
Debt Coverage: AIG's debt is not well covered by operating cash flow (11.4%).
Interest Coverage: AIG's interest payments on its debt are well covered by EBIT (4.1x coverage).
Balance Sheet
Dividend
What is American International Group current dividend yield, its reliability and sustainability?
2.38%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AIG's dividend (2.38%) is higher than the bottom 25% of dividend payers in the US market (1.33%).
High Dividend: AIG's dividend (2.38%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
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 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.6%), AIG's dividend payments are well covered by earnings.
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
How experienced are the management team and are they aligned to shareholders interests?
2.1yrs
Average management tenure
CEO
Peter Zaffino (54 yo)
0.67
Tenure
US$24,066,986
Compensation
Mr. Peter Salvatore Zaffino serves as Chief Executive Officer at American International Group, Inc. since 2021 and its President since January 1, 2020 and served as its Global Chief Operating Officer since...
CEO Compensation Analysis
Compensation vs Market: Peter's total compensation ($USD24.07M) is above average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Peter's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AIG's management team is considered experienced (2.1 years average tenure).
Board Members
Experienced Board: AIG's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AIG insiders have only sold shares 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 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$46.018b
- Shares outstanding: 855.20m
- Website: https://www.aig.com
Number of Employees
Location
- American International Group, Inc.
- 1271 Avenue of the Americas
- New York
- New York
- 10020
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:04 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.