American International Group
Market Cap
US$42.1b
Last Updated
2021/05/06 00:00 UTC
Data Sources
Company Financials +
Executive Summary
American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. More Details
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
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: AIG is less volatile than 75% 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.
Market Performance
7 Day Return
1.4%
AIG
2.6%
US Insurance
-1.6%
US Market
1 Year Return
109.7%
AIG
62.3%
US Insurance
52.8%
US Market
Return vs Industry: AIG exceeded the US Insurance industry which returned 56% over the past year.
Return vs Market: AIG exceeded the US Market which returned 52.4% over the past year.
Shareholder returns
| AIG | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | 2.6% | -1.6% |
| 30 Day | 4.5% | 6.4% | 1.3% |
| 90 Day | 18.2% | 16.7% | 3.5% |
| 1 Year | 117.3%109.7% | 66.6%62.3% | 55.4%52.8% |
| 3 Year | 1.7%-7.5% | 42.2%31.7% | 63.5%53.2% |
| 5 Year | 0.1%-12.7% | 86.1%63.1% | 125.8%100.7% |
Long-Term 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
3 weeks ago | Simply Wall St
Who Has Been Selling American International Group, Inc. (NYSE:AIG) Shares?1 month ago | Simply Wall St
It Might Not Be A Great Idea To Buy American International Group, Inc. (NYSE:AIG) For Its Next DividendValuation
Is American International Group undervalued compared to its fair value and its price relative to the market?
44.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AIG ($48.87) is trading below our estimate of fair value ($87.64)
Significantly Below Fair Value: AIG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AIG is unprofitable, so we can't compare its PE Ratio to the US 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 (0.6x) 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 9 analysts?
45.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: AIG is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: AIG's is expected to become profitable in the next 3 years.
Revenue vs Market: AIG's revenue (4.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AIG's revenue (4.1% 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%).
Past Performance
How has American International Group performed over the past 5 years?
-15.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AIG is currently unprofitable.
Growing Profit Margin: AIG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AIG is unprofitable, and losses have increased over the past 5 years at a rate of 15.3% 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 (23.1%).
Return on Equity
High ROE: AIG has a negative Return on Equity (-8.68%), as it is currently unprofitable.
Financial Health
How is American International Group's financial position?
Financial Position Analysis
Short Term Liabilities: AIG's short term assets ($109.3B) do not cover its short term liabilities ($151.9B).
Long Term Liabilities: AIG's short term assets ($109.3B) do not cover its long term liabilities ($367.4B).
Debt to Equity History and Analysis
Debt Level: AIG's debt to equity ratio (55.9%) is considered high.
Reducing Debt: AIG's debt to equity ratio has increased from 32.5% to 55.9% over the past 5 years.
Debt Coverage: AIG's debt is not well covered by operating cash flow (2.8%).
Interest Coverage: AIG is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Dividend
What is American International Group current dividend yield, its reliability and sustainability?
2.62%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AIG's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: AIG's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.42%).
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: 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 (28.3% 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 (53 yo)
0.33
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 ($USD11.13M).
Compensation vs Earnings: Peter's compensation has increased whilst the company is unprofitable.
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 considered experienced (4.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AIG 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: AIG
- Exchange: NYSE
- Founded: NaN
- Industry: Multi-line Insurance
- Sector: Insurance
- Market Cap: US$42.143b
- Shares outstanding: 862.34m
- Website: https://www.aig.com
Number of Employees
Location
- American International Group, Inc.
- 175 Water Street
- New York
- New York
- 10038
- United States
Listings
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/06 00:00 |
| End of Day Share Price | 2021/05/05 00:00 |
| Earnings | 2020/12/31 |
| 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.