American International Group
Market Cap
US$22.5b
Last Updated
2020/03/31 00:21 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.
Rewards
Risk Analysis
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: AIG's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
12.1%
AIG
11.7%
US Insurance
7.2%
US Market
1 Year Return
-41.0%
AIG
-17.3%
US Insurance
-10.4%
US Market
Return vs Industry: AIG underperformed the US Insurance industry which returned -17.3% over the past year.
Return vs Market: AIG underperformed the US Market which returned -10.4% over the past year.
Shareholder returns
| AIG | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.1% | 11.7% | 7.2% |
| 30 Day | -39.0% | -18.1% | -12.6% |
| 90 Day | -49.9% | -26.4% | -19.4% |
| 1 Year | -39.1%-41.0% | -15.3%-17.3% | -8.5%-10.4% |
| 3 Year | -55.2%-58.7% | -3.4%-11.0% | 15.8%8.3% |
| 5 Year | -47.4%-53.2% | 22.4%7.5% | 35.8%21.0% |
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
1 year ago | Simply Wall St
When Should You Buy American International Group Inc (NYSE:AIG)?1 year ago | Simply Wall St
Is American International Group Inc (NYSE:AIG) A Smart Pick For Income Investors?1 year ago | Simply Wall St
American International Group Inc (NYSE:AIG): What You Have To Know Before Buying For The Upcoming DividendValuation
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: AIG ($25.71) is trading below our estimate of fair value ($88.06)
Significantly Below Fair Value: AIG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AIG is good value based on its PE Ratio (6.9x) compared to the Insurance industry average (9.1x).
PE vs Market: AIG is good value based on its PE Ratio (6.9x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: AIG is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: AIG is good value based on its PB Ratio (0.3x) compared to the US Insurance industry average (0.8x).
Next Steps
Future Growth
How is American International Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
14.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIG's forecast earnings growth (14.1% per year) is above the savings rate (1.7%).
Earnings vs Market: AIG's earnings (14.1% per year) are forecast to grow faster than the US market (12.2% per year).
High Growth Earnings: AIG's earnings are forecast to grow, but not significantly.
Revenue vs Market: AIG's revenue is expected to decline over the next 3 years (-0.8% per year).
High Growth Revenue: AIG's revenue is forecast to decline over the next 3 years (-0.8% 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%).
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: AIG has high quality earnings.
Growing Profit Margin: AIG's current net profit margins (6.6%) are higher than last year (0.08%).
Past Earnings Growth Analysis
Earnings Trend: AIG's earnings have declined by -49.1% per year over the past 5 years.
Accelerating Growth: AIG's earnings growth over the past year (9005.6%) exceeds its 5-year average (-49.1% per year).
Earnings vs Industry: AIG earnings growth over the past year (9005.6%) exceeded the Insurance industry 43.7%.
Return on Equity
High ROE: AIG'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: 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 2x 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?
4.98%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AIG's dividend (4.98%) is higher than the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: AIG's dividend (4.98%) is low compared to the top 25% of dividend payers in the US market (5.4%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34.2%), 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 (26.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.8yrs
Average management tenure
CEO
Brian Duperreault (72yo)
2.83s
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 US market ($USD11.74M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 2.83yrs | US$20.85m | 0.013% $3.0m | |
| President | 0.17yr | US$12.62m | 0.0016% $359.3k | |
| Executive VP & CFO | 1.25yrs | US$4.76m | no data | |
| Executive VP & Chief Investment Officer | 4.42yrs | US$9.71m | 0.0093% $2.1m | |
| Executive VP and CEO of Life & Retirement | 6.42yrs | US$9.12m | 0.019% $4.2m | |
| Senior VP | no data | no data | 0.0016% $366.0k | |
| Executive VP & Chief Information Officer | 1.42yrs | no data | no data | |
| Head of Investor Relations & VP | 9.17yrs | no data | no data | |
| Chief Compliance Officer | 10.17yrs | no data | no data | |
| Executive VP & General Counsel | 2.42yrs | no data | 0.00087% $195.4k |
2.8yrs
Average Tenure
55.5yo
Average Age
Experienced Management: AIG's management team is considered experienced (2.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 2.83yrs | US$20.85m | 0.013% $3.0m | |
| Independent Director | 9.83yrs | US$314.11k | no data | |
| Independent Director | 6.83yrs | US$354.11k | 0.0017% $386.2k | |
| Independent Director | 8.83yrs | US$344.11k | no data | |
| Independent Director | 1.17yrs | no data | 0.0029% $642.2k | |
| Independent Chairman of the Board | 4.67yrs | US$564.11k | 0.00055% $123.5k | |
| Independent Director | 11.67yrs | US$314.11k | no data | |
| Independent Director | 8.83yrs | US$344.11k | 0.000010% $2.2k | |
| Independent Director | 4.67yrs | US$314.11k | no data | |
| Independent Director | 10.67yrs | US$324.11k | 0.00036% $80.8k |
7.8yrs
Average Tenure
68.5yo
Average Age
Experienced Board: AIG's board of directors are considered experienced (7.8 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: AIG
- Exchange: NYSE
- Founded: 1919
- Industry: Multi-line Insurance
- Sector: Insurance
- Market Cap: US$22.456b
- Shares outstanding: 873.42m
- Website: https://www.aig.com
Number of Employees
Location
- American International Group, Inc.
- 175 Water Street
- New York
- New York
- 10038
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AIG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1969 |
| AIG * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jan 1969 |
| AINN | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1969 |
| 0OAL | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jan 1969 |
| AIG | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Jan 1969 |
| AINN | XTRA (XETRA Trading Platform) | Yes | Common Stock | DE | EUR | Jan 1969 |
| AIG | SNSE (Santiago Stock Exchange) | Yes | Common Stock | CL | USD | Jan 1969 |
| AIG | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Jan 1969 |
| AINN | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | Jan 1969 |
| AIG | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 5 REPR 1 ORD USD2.50 | AR | ARS | Sep 2000 | |
| AIGB34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM USD2.50 | BR | BRL | Oct 2016 | |
| AIG.PRA | NYSE (New York Stock Exchange) | 5.85 DP SH PFD A | US | USD | Mar 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 00:21 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.