AIG

What They Do

American International Group (AIG) is one of the world's largest insurance companies, providing property & casualty insurance, life insurance, and retirement services to consumers and businesses globally. They help individuals and companies protect against financial losses from accidents, disasters, and other risks while generating returns by investing insurance premiums until claims are paid.

Investment Thesis

Key Risks

Growth Story

AIG is focused on profitable growth in commercial lines and expanding its presence in high-growth international markets, particularly Asia. The company targets mid-single-digit revenue growth through disciplined underwriting and selective market expansion. Digital transformation initiatives aim to improve customer experience and operational efficiency.

Profitability Profile

AIG maintains disciplined underwriting standards targeting a combined ratio below 96% in property & casualty operations, indicating profitable insurance operations before investment income. The company generates substantial free cash flow from its insurance operations, with investment income providing additional returns on policyholder reserves and shareholder equity.

Competitive Position

AIG competes with major insurers like Chubb, Travelers, and Zurich in commercial lines, while facing Prudential, MetLife, and others in life insurance. The company's global reach, specialized expertise in complex commercial risks, and strong brand recognition in international markets provide competitive differentiation, particularly in aviation, marine, and energy insurance.

Recent Momentum

Without access to recent earnings data, AIG's momentum will largely depend on catastrophe loss experience, reserve development, and progress on operational improvements. The insurance sector has generally benefited from firming pricing conditions and higher interest rates improving investment yields on new money.

What Wall Street Thinks

Analyst sentiment on AIG typically focuses on the company's progress in improving operational efficiency, maintaining underwriting discipline, and effectively deploying capital. Key debates often center around catastrophe loss assumptions, reserve adequacy, and the pace of profitable growth initiatives.

The Bottom Line

AIG represents a transformed insurance franchise focused on profitable growth and capital returns, but success depends on maintaining underwriting discipline while navigating an environment of elevated catastrophe risks and economic uncertainty.