AIG

American International GroupNYSE:AIG Stock Report

Market Cap

US$46.0b

7D

-1.2%

1Y

92.2%

Updated

18 Sep, 2021

Data

Company Financials +
AIG fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health1/6
Dividends3/6

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

Summary of all time highs, changes and price drops for American International Group
Historical stock prices
Current Share PriceUS$53.81
52 Week HighUS$25.57
52 Week LowUS$55.79
Beta1.39
1 Month Change1.60%
3 Month Change14.86%
1 Year Change92.25%
3 Year Change-1.57%
5 Year Change-8.38%
Change since IPO-69.74%

Recent News & Updates

Jul 26

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

AIGUS InsuranceUS Market
7D-1.2%-0.7%-0.6%
1Y92.2%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

Is AIG's price volatile compared to industry and market?
AIG volatility
AIG Beta1.39
Industry Beta0.97
Market Beta1

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

FoundedEmployeesCEOWebsite
191945,000Peter Zaffinohttps://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

How do American International Group's earnings and revenue compare to its market cap?
AIG fundamental statistics
Market CapUS$46.02b
Earnings (TTM)US$4.18b
Revenue (TTM)US$44.34b

11.0x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIG income statement (TTM)
RevenueUS$44.34b
Cost of RevenueUS$30.48b
Gross ProfitUS$13.86b
ExpensesUS$9.68b
EarningsUS$4.18b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.82
Gross Margin31.25%
Net Profit Margin9.42%
Debt/Equity Ratio53.4%

How did AIG perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

27%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.