| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 33.20 | -56 |
| Intrinsic value (DCF) | 42.25 | -43 |
| Graham-Dodd Method | 51.30 | -31 |
| Graham Formula | 23.60 | -68 |
American International Group, Inc. (AIG) is a leading global insurance company headquartered in New York, offering a diversified portfolio of insurance products and financial services. Founded in 1919, AIG operates through two primary segments: General Insurance and Life & Retirement. The General Insurance segment provides commercial, institutional, and individual coverage, including liability, property, and specialty insurance such as cyber risk and political risk. The Life & Retirement segment focuses on annuities, life insurance, and retirement solutions, distributed through independent agents, financial advisors, and direct channels. AIG serves clients in North America and internationally, leveraging its strong brand recognition and extensive distribution network. As a key player in the insurance industry, AIG is well-positioned in the Financial Services sector, benefiting from its diversified risk management strategies and global footprint. Investors and policyholders alike value AIG for its stability, innovation, and commitment to meeting evolving market demands.
AIG presents a compelling investment case with its diversified insurance portfolio, strong brand, and global reach. The company's solid financials, including a market cap of $47.2 billion and net income of $3.35 billion, underscore its stability. AIG's beta of 0.7 suggests lower volatility compared to the broader market, making it an attractive option for risk-averse investors. The dividend yield, supported by a $1.60 per share payout, adds to its appeal. However, risks include exposure to catastrophic events and regulatory challenges in multiple jurisdictions. The company's ability to manage underwriting discipline and optimize its Life & Retirement segment will be critical for sustained growth. Overall, AIG is a well-established player with a balanced risk-reward profile.
AIG competes in the highly competitive global insurance market, where differentiation is driven by underwriting expertise, risk management, and distribution networks. The company's competitive advantage lies in its diversified product offerings, strong brand recognition, and global presence. AIG's General Insurance segment benefits from specialized underwriting capabilities in niche areas like cyber risk and political risk, which are less commoditized than standard insurance products. The Life & Retirement segment leverages AIG's financial strength to offer stable value products and annuities, appealing to retirees and institutional clients. However, AIG faces intense competition from larger peers like Chubb and Berkshire Hathaway, which have stronger balance sheets and broader market penetration. AIG's turnaround strategy post-2008 financial crisis has improved its operational efficiency, but legacy liabilities and regulatory scrutiny remain challenges. The company's focus on digital transformation and cost optimization will be key to maintaining competitiveness in an evolving industry.