American International Group, Inc. (NYSE: AIG)

Sector: Financial Services Industry: Insurance - Diversified CIK: 0000005272
Market Cap 44.86 Bn
P/B 1.09
P/E 14.49
P/S 1.68
ROIC (Qtr) 9.38
Div Yield % 2.20
Rev 1y % (Qtr) -8.74
Total Debt (Qtr) 9.19 Bn
Debt/Equity (Qtr) 0.22
Add ratio to table...

About

American International Group, Inc. (AIG), a prominent player in the global insurance industry, provides insurance solutions to businesses and individuals across approximately 190 countries and jurisdictions. AIG's stock symbol is AIG, and it has established a strong presence in the insurance sector over the years, making it one of the most well-known and sizable insurance companies worldwide. AIG's operations span a diverse range of insurance products and services, including property, casualty, life, and retirement insurance. The company operates...

Read more

Investment thesis

Bull case

  • Strong tangible asset base of 157.82B provides 17.17x coverage of total debt 9.19B, indicating robust asset backing and low credit risk.
  • Tangible assets of 157.82B provide exceptional 8.77x coverage of deferred revenue 17.99B, showing strong service capability backing.
  • Operating cash flow of 3.31B provides exceptional 3314x coverage of minority interest expenses 1M, showing strong core operations.
  • Free cash flow of 3.31B provides exceptional 8.37x coverage of interest expense 396M, showing strong debt service ability.
  • Cash position of 1.27B provides exceptional 1274x coverage of minority interest expenses 1M, indicating strong liquidity.

Bear case

  • Operating cash flow of 3.31B provides thin coverage of dividend payments of (976M) with a -3.40 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 3.31B provides insufficient coverage of deferred revenue obligations of 17.99B, which is 0.18x, raising concerns about future service delivery capabilities.
  • Operating earnings of 4.27B show weak coverage of depreciation charges of 3.46B, with a 1.24 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 3.46B relative to operating cash flow of 3.31B, which is 1.04x suggests significant maintenance capital requirements affecting free cash flow.
  • Operating cash flow of 3.31B barely covers operating expenses of (81M) with a -40.91 ratio, suggesting thin operational efficiency margins and limited flexibility.

Geographical Breakdown of Revenue (2025)

Peer comparison

Companies in the Insurance - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BRK-B Berkshire Hathaway Inc 1,086.07 Bn 16.10 2.71 127.24 Bn
2 AIG American International Group, Inc. 44.86 Bn 14.49 1.68 9.19 Bn
3 SLF Sun Life Financial Inc 38.17 Bn 15.06 1.50 7.61 Bn
4 ACGL Arch Capital Group Ltd. 36.73 Bn 9.05 1.88 2.73 Bn
5 BNT Brookfield Wealth Solutions Ltd. 11.42 Bn 8.65 0.80 4.77 Bn
6 FIHL Fidelis Insurance Holdings Ltd 2.08 Bn -143.64 0.81 0.84 Bn
7 IGIC International General Insurance Holdings Ltd. 1.24 Bn 35.96 3.93 0.00 Bn
8 WDH Waterdrop Inc. 0.65 Bn 9.10 1.42 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.33 0.32
EV to Cash from Ops. EV/CFO 15.85 14.23
EV to Debt EV to Debt 5.71 4.74
EV to EBIT EV/EBIT 12.29 15.68
EV to EBITDA EV/EBITDA 6.80 33.76
EV to Free Cash Flow [EV/FCF] EV/FCF 15.85 18.23
EV to Market Cap EV to Market Cap 1.17 0.76
EV to Revenue EV/Rev 1.96 1.55
Price to Book Value [P/B] P/B 1.09 1.50
Price to Earnings [P/E] P/E 14.49 -4.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 3.17 2.23
Dividend Payout Ratio % Div Payout % (Qtr) 31.90 395.61
Dividend per Basic Share Div per Share (Qtr) 1.75 1.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 29.84 10.14
Interest Coverage Int. cover (Qtr) 10.79 9.63
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 19.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -2.15 15.53
Dividend Growth (1y) % Div 1y % (Qtr) 12.18 -3.62
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 149.43 7.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.74 -3.03
EBIT Growth (1y) % EBIT 1y % (Qtr) 1,774.56 223.97
EBT Growth (1y) % EBT 1y % (Qtr) 1,757.26 226.15
EPS Growth (1y) % EPS 1y % (Qtr) 350.23 31.54
FCF Growth (1y) % FCF 1y % (Qtr) 1.25 -17.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -0.56 3.76
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.17 0.18
Cash Payout Ratio Cash Payout (Qtr) 0.29 0.16
Cash Ratio Cash Ratio 0.00 0.08
Current Ratio Current Ratio 0.00 0.32
Debt to Equity Ratio Debt/Equity (Qtr) 0.22 0.20
Interest Cover Ratio Int Coverage (Qtr) 10.79 9.63
Times Interest Earned Times Interest Earned (Qtr) 10.79 9.63
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 28.90 13.98
EBIT Margin % EBIT Margin % (Qtr) 15.96 29.75
EBT Margin % EBT Margin % (Qtr) 14.48 15.51
Gross Margin % Gross Margin % (Qtr) 47.10 45.01
Net Profit Margin % Net Margin % (Qtr) 11.60 13.40