Hide

FocusBar

Subscribe to Premium Member
Switch to:

GuruFocus Financial Strength Rank measures how strong a companyย’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 4/10

vs
industry
vs
history
Cash to Debt 0.024
AIG's Cash to Debt is ranked lower than
100% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.69 vs. AIG: 0.024 )
AIG' s 10-Year Cash to Debt Range
Min: 0   Max: 0.05
Current: 0.02

0
0.05
Equity to Asset 0.179
AIG's Equity to Asset is ranked higher than
65% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.14 vs. AIG: 0.179 )
AIG' s 10-Year Equity to Asset Range
Min: 0.05   Max: 0.19
Current: 0.18

0.05
0.19
Interest Coverage 4
AIG's Interest Coverage is ranked higher than
51% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 10000.00 vs. AIG: 4 )
AIG' s 10-Year Interest Coverage Range
Min: 2   Max: No Debt
Current: 4

F-Score: 6
Z-Score: 0.28
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 14.20
AIG's Operating margin (%) is ranked higher than
84% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 7.85 vs. AIG: 14.20 )
AIG' s 10-Year Operating margin (%) Range
Min: -979.5   Max: 37.3
Current: 14.2

-979.5
37.3
Net-margin (%) 5.2
AIG's Net-margin (%) is ranked higher than
86% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 5.40 vs. AIG: 5.2 )
AIG' s 10-Year Net-margin (%) Range
Min: -894.2   Max: 28
Current: 5.2

-894.2
28
ROE (%) 3.5
AIG's ROE (%) is ranked lower than
51% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 8.40 vs. AIG: 3.5 )
AIG' s 10-Year ROE (%) Range
Min: -188.4   Max: 17
Current: 3.5

-188.4
17
ROA (%) 0.6
AIG's ROA (%) is ranked higher than
51% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 1.20 vs. AIG: 0.6 )
AIG' s 10-Year ROA (%) Range
Min: -11.5   Max: 3.2
Current: 0.6

-11.5
3.2
Revenue Growth (%) -51.6
AIG's Revenue Growth (%) is ranked lower than
62% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 4.50 vs. AIG: -51.6 )
AIG' s 10-Year Revenue Growth (%) Range
Min: -51.6   Max: 45.2
Current: -51.6

-51.6
45.2
EBITDA Growth (%) 4.5
AIG's EBITDA Growth (%) is ranked higher than
68% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: -3.45 vs. AIG: 4.5 )
AIG' s 10-Year EBITDA Growth (%) Range
Min: -59.8   Max: 24.1
Current: 4.5

-59.8
24.1
ยป AIG's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2012

AIG Guru Trades in Q2 2012

Pioneer Investments 10,570 sh (New)
Bill Nygren 2,100,000 sh (New)
Louis Moore Bacon 20,000 sh (New)
Daniel Loeb 2,250,000 sh (New)
John Griffin 10,440,000 sh (New)
Paul Tudor Jones 129,000 sh (New)
NWQ Managers 7,181,534 sh (New)
Andreas Halvorsen 2,090,000 sh (New)
Steven Romick 3,640,000 sh (New)
Julian Robertson 523,000 sh (New)
Murray Stahl 21,981 sh (New)
Bruce Kovner 2,167,976 sh (+1700.79%)
Jeremy Grantham 169,700 sh (+433.65%)
Mario Gabelli 96,725 sh (+424.97%)
Leon Cooperman 4,586,900 sh (+213.1%)
Mason Hawkins 62,250 sh (+202.18%)
Jeff Auxier 19,244 sh (+18.2%)
Donald Smith 1,459,689 sh (+14.16%)
HOTCHKIS & WILEY 15,997,587 sh (+11.95%)
First Pacific Advisors 3,809,100 sh (+11.23%)
Whitney Tilson 11,300 sh (unchged)
Paul Tudor Jones 728,800 sh (unchged)
John Keeley Sold Out
Jim Simons Sold Out
Bruce Berkowitz 87,987,894 sh (-3.8%)
Richard Pzena 7,874,757 sh (-5.34%)
Larry Robbins 8,164,603 sh (-13.01%)
Whitney Tilson 16,340 sh (-94.03%)
Steven Cohen 88,821 sh (-98.04%)
Fairholme Fund 81,327,425 sh (-3.33%)
» More
Q3 2012

AIG Guru Trades in Q3 2012

Diamond Hill Capital 2,233,645 sh (New)
Richard Perry 10,500,000 sh (New)
Jim Simons 680,160 sh (New)
George Soros 15,220,849 sh (New)
John Keeley 34,000 sh (New)
David Tepper 8,250,000 sh (New)
Louis Moore Bacon 3,525,000 sh (+17525%)
Steven Cohen 8,725,104 sh (+9723.24%)
Whitney Tilson 262,140 sh (+1504.28%)
Daniel Loeb 23,500,000 sh (+944.44%)
Bruce Kovner 8,706,194 sh (+301.58%)
Jeremy Grantham 620,500 sh (+265.65%)
Andreas Halvorsen 7,505,362 sh (+259.11%)
Bill Nygren 4,400,000 sh (+109.52%)
Leon Cooperman 8,054,600 sh (+75.6%)
Mario Gabelli 147,725 sh (+52.73%)
NWQ Managers 10,300,186 sh (+43.43%)
Richard Pzena 10,149,540 sh (+28.89%)
HOTCHKIS & WILEY 20,196,859 sh (+26.25%)
Jeff Auxier 24,244 sh (+25.98%)
Steven Romick 4,320,500 sh (+18.7%)
First Pacific Advisors 4,516,700 sh (+18.58%)
Larry Robbins 9,637,698 sh (+18.04%)
Paul Tudor Jones 132,600 sh (+2.79%)
Donald Smith 1,460,376 sh (+0.05%)
George Soros 250,000 sh (unchged)
Whitney Tilson 291,300 sh (unchged)
Paul Tudor Jones 800,000 sh (unchged)
John Griffin 10,440,000 sh (unchged)
Julian Robertson 523,000 sh (unchged)
Mason Hawkins 62,250 sh (unchged)
Bruce Berkowitz 86,545,718 sh (-1.64%)
Murray Stahl 20,351 sh (-7.42%)
Pioneer Investments 9,580 sh (-9.37%)
Fairholme Fund 80,380,825 sh (-1.16%)
» More
Q4 2012

AIG Guru Trades in Q4 2012

Seth Klarman 7,000,000 sh (New)
Chris Davis 1,170,500 sh (New)
Jean-Marie Eveillard 1,904,599 sh (New)
Ronald Muhlenkamp 414,870 sh (New)
Ken Heebner 710,000 sh (New)
Alan Fournier 3,647,048 sh (New)
Tom Russo 6,000 sh (New)
Steve Mandel 6,993,600 sh (New)
Howard Marks 525,000 sh (New)
Murray Stahl 438,000 sh (+2052.23%)
Jim Simons 2,291,560 sh (+236.91%)
Diamond Hill Capital 6,455,557 sh (+189.01%)
Jeff Auxier 45,644 sh (+88.27%)
Mario Gabelli 256,175 sh (+73.41%)
Richard Perry 14,865,903 sh (+41.58%)
John Keeley 44,000 sh (+29.41%)
Mason Hawkins 80,075 sh (+28.63%)
First Pacific Advisors 5,737,100 sh (+27.02%)
Pioneer Investments 11,565 sh (+20.72%)
Steven Romick 5,168,300 sh (+19.62%)
Donald Smith 1,734,501 sh (+18.77%)
Bruce Kovner 10,158,301 sh (+16.68%)
Paul Tudor Jones 150,525 sh (+13.52%)
Bill Nygren 4,995,000 sh (+13.52%)
Julian Robertson 539,600 sh (+3.17%)
Richard Pzena 10,337,388 sh (+1.85%)
Louis Moore Bacon 3,550,000 sh (+0.71%)
Whitney Tilson 24,700 sh (unchged)
Zeke Ashton 130,000 sh (unchged)
John Griffin 10,440,000 sh (unchged)
Paul Tudor Jones 800,000 sh (unchged)
Jeremy Grantham 1,299,528 sh (unchged)
Bruce Berkowitz 85,862,294 sh (-0.79%)
NWQ Managers 10,010,692 sh (-2.81%)
Larry Robbins 9,337,698 sh (-3.11%)
Leon Cooperman 7,790,600 sh (-3.28%)
Whitney Tilson 244,562 sh (-6.71%)
HOTCHKIS & WILEY 17,648,202 sh (-12.62%)
Andreas Halvorsen 6,391,462 sh (-14.84%)
Daniel Loeb 18,500,000 sh (-21.28%)
David Tepper 6,059,000 sh (-26.56%)
Steven Cohen 5,943,113 sh (-31.88%)
George Soros 8,853,849 sh (-41.83%)
Fairholme Fund 80,280,825 sh (-0.12%)
» More
Q1 2013

AIG Guru Trades in Q1 2013

Arnold Schneider 163,080 sh (New)
Mario Gabelli 441,775 sh (+72.45%)
Seth Klarman 11,850,200 sh (+69.29%)
Donald Smith 2,290,422 sh (+32.05%)
Murray Stahl 576,449 sh (+31.61%)
Whitney Tilson 303,444 sh (+24.08%)
Jeremy Grantham 1,571,028 sh (+20.89%)
Alan Fournier 4,297,048 sh (+17.82%)
Ken Heebner 810,000 sh (+14.08%)
Steve Mandel 7,343,600 sh (+5%)
Bill Nygren 5,195,000 sh (+4%)
Richard Pzena 10,746,318 sh (+3.96%)
Larry Robbins 9,637,698 sh (+3.21%)
Tom Russo 6,105 sh (+1.75%)
Ronald Muhlenkamp 418,370 sh (+0.84%)
Diamond Hill Capital 6,480,835 sh (+0.39%)
Bruce Berkowitz 85,900,077 sh (+0.04%)
Chris Davis 1,170,500 sh (unchged)
Howard Marks 525,000 sh (unchged)
John Keeley 44,000 sh (unchged)
First Pacific Advisors 5,737,100 sh (unchged)
Paul Tudor Jones 1,945,500 sh (unchged)
Whitney Tilson 19,400 sh (unchged)
Zeke Ashton 130,000 sh (unchged)
Steven Romick 5,168,300 sh (unchged)
Fairholme Fund 80,280,825 sh (unchged)
Mason Hawkins Sold Out
Louis Moore Bacon Sold Out
Andreas Halvorsen Sold Out
Jeff Auxier 45,544 sh (-0.22%)
Leon Cooperman 7,747,300 sh (-0.56%)
NWQ Managers 9,891,861 sh (-1.19%)
HOTCHKIS & WILEY 17,371,134 sh (-1.57%)
Julian Robertson 487,600 sh (-9.64%)
Richard Perry 13,157,260 sh (-11.49%)
Jim Simons 2,006,060 sh (-12.46%)
John Griffin 8,705,000 sh (-16.62%)
Daniel Loeb 13,500,000 sh (-27.03%)
David Tepper 4,326,055 sh (-28.6%)
Jean-Marie Eveillard 1,294,821 sh (-32.02%)
Pioneer Investments 7,345 sh (-36.49%)
Bruce Kovner 5,207,078 sh (-48.74%)
Paul Tudor Jones 74,000 sh (-50.84%)
Steven Cohen 2,179,306 sh (-63.33%)
George Soros 2,887,849 sh (-67.38%)
» More
» Details

Insider Trades

Latest Guru Trades with AIG

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Seth Klarman 2013-03-31 Add 69.29%6.06%$34.84 - $39.58 $ 44.9620%11850200
Daniel Loeb 2013-03-31 Reduce -27.03%3.24%$34.84 - $39.58 $ 44.9620%13500000
George Soros 2013-03-31 Reduce -67.38%2.49%$34.84 - $39.58 $ 44.9620%2887849
Donald Smith 2013-03-31 Add 32.05%0.46%$34.84 - $39.58 $ 44.9620%2290422
Jean-Marie Eveillard 2013-03-31 Reduce -32.02%0.08%$34.84 - $39.58 $ 44.9620%1294821
Mario Gabelli 2013-03-31 Add 72.45%0.05%$34.84 - $39.58 $ 44.9620%441775
Mason Hawkins 2013-03-31 Sold Out 0.01%$34.84 - $39.58 $ 44.9620%0
Seth Klarman 2012-12-31 New Buy8%$30.68 - $37.21 $ 44.9632%7000000
Richard Perry 2012-12-31 Add 41.58%5.7%$30.68 - $37.21 $ 44.9632%14865903
George Soros 2012-12-31 Reduce -41.83%3.35%$30.68 - $37.21 $ 44.9632%8853849
Daniel Loeb 2012-12-31 Reduce -21.28%3.23%$30.68 - $37.21 $ 44.9632%18500000
Ronald Muhlenkamp 2012-12-31 New Buy3.1%$30.68 - $37.21 $ 44.9632%414870
Steve Mandel 2012-12-31 New Buy1.5%$30.68 - $37.21 $ 44.9632%6993600
Donald Smith 2012-12-31 Add 18.77%0.27%$30.68 - $37.21 $ 44.9632%1734501
Jean-Marie Eveillard 2012-12-31 New Buy0.24%$30.68 - $37.21 $ 44.9632%1904599
Mario Gabelli 2012-12-31 Add 73.41%0.03%$30.68 - $37.21 $ 44.9632%256175
John Keeley 2012-12-31 Add 29.41%0.01%$30.68 - $37.21 $ 44.9632%44000
Mason Hawkins 2012-12-31 Add 28.63%$30.68 - $37.21 $ 44.9632%80075
Richard Perry 2012-09-30 New Buy14.6%$30.17 - $35 $ 44.9638%10500000
Daniel Loeb 2012-09-30 Add 944.44%13.74%$30.17 - $35 $ 44.9638%23500000
George Soros 2012-09-30 New Buy8%$30.17 - $35 $ 44.9638%15220849
Leon Cooperman 2012-09-30 Add 75.6%2.28%$30.17 - $35 $ 44.9638%8054600
John Keeley 2012-09-30 New Buy0.03%$30.17 - $35 $ 44.9638%34000
Mario Gabelli 2012-09-30 Add 52.73%0.01%$30.17 - $35 $ 44.9638%147725
John Griffin 2012-06-30 New Buy5.1%$27.43 - $34.4 $ 44.9644%10440000
Julian Robertson 2012-06-30 New Buy4.7%$27.43 - $34.4 $ 44.9644%523000
Leon Cooperman 2012-06-30 Add 213.1%2.25%$27.43 - $34.4 $ 44.9644%4586900
Daniel Loeb 2012-06-30 New Buy2.2%$27.43 - $34.4 $ 44.9644%2250000
Donald Smith 2012-06-30 Add 14.16%0.17%$27.43 - $34.4 $ 44.9644%1459689
Mario Gabelli 2012-06-30 Add 424.97%0.02%$27.43 - $34.4 $ 44.9644%96725
Mason Hawkins 2012-06-30 Add 202.18%0.01%$27.43 - $34.4 $ 44.9644%62250
John Keeley 2012-06-30 Sold Out 0.01%$27.43 - $34.4 $ 44.9644%0
Premium More recent guru trades are included for Premium Members only!!

Guru Investment Theses on American International Group Inc

Diamond Hill Capital Comments on AIG - Oct 23, 2012

Property and casualty insurer American International Group, Inc. (AIG) disposed of nearly all of the troubled exposures which impaired the company's value during the Financial Crisis, and its core insurance operations appear to be regaining its strong competitive positions. With the latest Treasury sale, the government is down to 16% ownership in the company, and all U.S. government debts have been repaid. The shares were purchased near the end of the quarter.

From Diamond Hill Capital's Third Quarter Large Cap Fund Commentary.


Check out Diamond Hill Capital latest stock trades

Daniel Loeb Comments on AIG - Oct 03, 2012

Equity: AIG (AIG)
We originally purchased AIG shares in March after identifying the US Treasuryโ€™s impending sales of its AIG holdings as an instance of one of our favorite types of investments: โ€œforcedโ€ (or non-economically-motivated) selling. We determined Treasury was both anchored to its $29 cost basis and intent on exiting its position as soon as possible, allowing us to purchase AIG at a discount to intrinsic value. In addition to the forced selling dynamic that created the opportunity, we believed AIGโ€™s substantial capital return โ€“ manifested as buybacks in the Treasuryโ€™s offering โ€“ provided downside protection. Finally, we also liked the technical bid for AIG shares coming out of the offering, as its index weighting would increase with the reduction in government-owned shares, forcing index-sensitive investors to grow their position in the equity.

We soon realized that our initial thesis for AIG was only the prologue. Rather than simply a chance to create value from a short-term dislocation in pricing due to forced selling, AIG was actually more similar to another type of Third Point investment: a post-reorg equity newly emerged, with all of the attendant upside. We continued to accumulate AIG shares in Treasuryโ€™s offerings in the second and third quarters, as well as in the open market, considering it a cheap restructured equity that was rationalizing its non-core operations while executing an operational turnaround. So while many investors argue the most recent placement from the Treasury was the last of AIGโ€™s main catalysts, we were not โ€œrentersโ€ and instead view AIG as a core, event-driven investment with attractive post-reorg equity-like characteristics.

In the near term, we believe AIGโ€™s continued portfolio optimization should free up additional excess capital that, subject to regulatory approval, likely can be returned to shareholders. In December, AIGโ€™s lockup in its listed, non-core Asian life insurance business, AIA, will expire, allowing the company to monetize its unencumbered 13.7% interest worth some USD $6.1 billion at recent market valuations. Further, we believe the sale, spin, or listing of ILFC, AIGโ€™s aircraft lessor subsidiary, will not only generate $5+ billion in excess capital but also simplify the groupโ€™s structure, reducing cost of capital.

Longer term, we believe the companyโ€™s operational turnaround will help AIG realize its intrinsic value, as Chartis, AIGโ€™s property and casualty arm, improves its return on equity to the targeted 10 - 12% by 2015. To achieve this ROE target, Chartisโ€™s management, led by the talented Peter Hancock, is emphasizing international and shorter tail consumer property lines, while investing in new policy administration and back office systems. We believe this ROE target is achievable, and view the early evidence as promising: a ~300 bps year-over-year improvement in Chartisโ€™ Q2โ€™12 ex-cat loss ratio to 65.2% and a ~100 bps year-over-year increase in consumer share of premiums to 39% in Q2. We are further encouraged that Chartisโ€™ turnaround has the wind at its back with the mid to high single digit pricing growth in the property and casualty insurance industry.

Treasuryโ€™s ultimate sale of its remaining 16% stake in AIG will serve as a critical catalyst for the company, allowing initiation of a dividend, a change in managementโ€™s compensation structure to a more standard incentive-based bonus payout model, and the removal of the โ€œoverhangโ€ of Treasury ownership. Given these multiple paths to value creation, we believe AIGโ€™s current valuation at ~10x consensus 2013 earnings and 0.5x pro forma tangible book value of $65 per share has significant upside from these levels.

From Third Point's third quarter letter.

Check out Daniel Loeb latest stock trades

Bruce Berkowitz Comments on AIG - Aug 03, 2012

From Berkowitz's second-quarter letter:

Our best idea remains AIG (AIG) common (35% of the Fund) with a reported book value of $57 per share. There are few occasions when systemically important franchises sell for half of book value and are profitable. This is one of those times. AIG warrants held by the Fund (another 3% of the Fund) provide the right to 21+ million shares at $45, or maybe more shares at lower strike prices for the next 34 quarters if dividends above $0.675 per trailing 12-month period are paid.
Check out Bruce Berkowitz latest stock trades

Bill Nygren Comments on AIG - Jul 10, 2012

From Bill Nygren's second-quarter letter:

American International Group (AIG-$32)
AIG (AIG) is a large insurance company operating in both property and casualty (Chartis) and life (SunAmerica). It is a poster child of the financial crisis, having required over $180 billion in government aid, and the government still owns over half of its outstanding shares. While the rescue measures still dampen its current valuation, we believe AIG has made remarkable progress under the leadership of CEO Robert Benmosche. The government loans have been completely repaid, and the stock currently trades above the governmentโ€™s breakeven point of $29. Two years ago, we found it almost impossible to estimate the value of AIGโ€™s equity. The analysis involved guessing at proceeds from sales of businesses and valuing large, opaque, levered loan portfolios. Today the analysis is the same as it would be for any insurer: What is its future earnings outlook? How good are its reserves? How will its capital be invested? Chartis went through a difficult period of writing unprofitable business just to grow revenues. That has stopped, and we believe that for the past several years Chartis has focused on only writing profitable business even if growth suffers. Reserves have been boosted to a level that we think is consistent with other high-quality insurers. Capital is being invested primarily in share repurchase -- with AIG selling at just over half of book, this is nicely accretive to the companyโ€™s per-share book value. We believe that AIG should earn over $3 per share this year and is on track to earn in excess of $5 per share within a few years. We believe that AIG is priced as if its future looks like its past. We expect the current discount to other insurers will diminish as the memory of the financial crisis fades.
Check out Bill Nygren latest stock trades

Whitney Tilson Presentation about AIG from Value Investing Congress in Omaha - May 25, 2012

Below is the link to T2 Partners' Whitney Tilson and Glenn Tongues' presentation on AIG from the recent Value Investing Congress Conference in Omaha.

You will have to sign in or register at the value investing congress website to see the video.

Value Investing Letter - T2 Partners' AIG Video Presentation
Check out Whitney Tilson latest stock trades

Top Ranked Articles about American International Group Inc

Seth Klarman Buys BP, AIG, Elan Corp, Sells News Corp., Oracle Seth Klarman - Seth Klarman Buys BP, AIG, Elan Corp, Sells News Corp., Oracle
Renowned value investor Seth Klarman just reported his first quarter portfolio. Seth Klarman buys BP, AIG, Elan Corp, Rovi Corp, Idenix Pharmaceuticals, Inc., Directv, sells News Corp, Oracle, Genworth Financial Inc, Allied Nevada Gold Corp, Ituran Location and Control, Ltd. during the 3-months ended 03/31/2013, according to the most recent filings of his investment company, The Baupost Group. As of 03/31/2013, The Baupost Group owns 22 stocks with a total value of $3.1 billion. These are the details of the buys and sells. [list]New Purchases: ELN, DTV,Added Positions: BP, AIG, ROVI, Read more...
Third Point Update and Top Three Daniel Loeb - Third Point Update And Top Three
Highest-earning hedge fund managers are in the spotlight this week as many of the investor Gurus have found a place on the new โ€œRich Listโ€ released by Institutional Investorโ€™s Alpha. Third Pointโ€™s letter-writing shareholder activist founder Daniel Loeb is No. 10 on the Rich List, and is reported to have earned $380 million in 2012. Read more...
Bruce Berkowitz Pulls Plug on CIT - Sold Out 16 Million Shares Bruce Berkowitz - Bruce Berkowitz Pulls Plug On CIT - Sold Out 16 Million Shares
โ€œBullish on Americaโ€ investor phenom Bruce Berkowitz once said, "I donโ€™t invest in things I canโ€™t understand.โ€ Read more...
Action on AIG, MS, WTSL - Warren Buffett Snags AIG Execs for Berkshire
Itโ€™s not so much an AIG walk out but a top executive stroll out to greener pastures in the Investors' Oz of Omaha. [i]The executive trading story of the hour is that Warren Buffett of Berkshire Hathaway Inc. (BRK.A) (BRK.B) is hiring AIG CEO Peter Eastwood and three other executives, according to Insurance Insider. The other AIG executives packing for Omaha are David J. Bresnahan, Sanjay Godhwani and David Fields. Read more...
Arnold Schneider Selects 8 New Stocks Arnold Schneider - Arnold Schneider Selects 8 New Stocks
Arnold Schneider, founder of $1.7 billion Pennsylvania-based Schneider Capital Management, bought eight new additions to his portfolio in the first quarter: AIG (AIG), Morgan Stanley (MS), Wet Seal Inc. (WTSL), STR Holdings Inc. (STRI), E*Trade Financial Corp. (ETFC), Alcoa Inc. (AA) and Kinross Gold Corporation (KGC). Read more...
Bruce Berkowitzโ€™s Investments Still Have Significant Upside Bruce Berkowitz - Bruce Berkowitzโ€™s Investments Still Have Significant Upside
Though Bruce Berkowitzโ€™s Fairholme Fund (FAIRX) has already come back from a 32.42% loss in 2011 to a 35.81% gain 2012, he believes his investment thesis for the stocks largely responsible for the deficit will not play out in full for about five years. In a February interview with Bloomberg, Berkowitz gave an idea of his vision for the future of the stocks in his fund. โ€œOver the next five to seven years, as they recover, equity values will increase and market prices more so,โ€ he said. Most of the companies, he said, he bought at half of liquidation value. Read more...
'Zenvestor' Bruce Berkowitz โ€“ Cycles of Fortune Bruce Berkowitz - 'Zenvestor' Bruce Berkowitz โ€“ Cycles Of Fortune
Eminently quotable and relativistic Guru Investor Bruce Berkowitz, founder and manager of the Fairholme Fund, radiates a zen-like understanding of human behavior and the market. His fund lost 32% in 2011, only to bounce back to the Himalayan-like heights of hedge fund performance charts in 2012. Thanks to his massive bets that financial giants American International Group Inc. (AIG), Bank of America (BAC) and Citigroup (C) would recover from the 2008 crisis, the Fairholme Fund is back at the very top of hedge funds once again. Devastated by the industry meltdown, his top financial picks are contrarian stocks, and great examples of how Berkowitz buys at a discount and holds for the long term. Read more...
Top Three Dividend Picks from 49 Big Investment Gurus
I personally follow the activities of Warren Buffett. He is a highly trusted investor with a proven long-term track record. I also look at Carl Icahnโ€™s (estimated net worth of $20 billion) stock purchases because he is one younger investor who can replace Warren Buffett's wisdom one day. Both investors have a different view on the capital market but they are very successful in the how they invest. These two men are great examples of people who built careers on Wall-Street then developed into top investment gurus. I also follow investors like George Soros. Read more...
The Lowest PE Stocks with the Greatest Guru Holdings David Tepper,Jeremy Grantham - The Lowest PE Stocks With The Greatest Guru Holdings
The P/E ratio is a strong indicator of whether a stock is a good value, and the lower the better. For this reason, many of the stocks with the lowest P/E ratios are broadly held by the investors GuruFocus tracks. However, a low P/E ratio stock requires further investigation, as the company could be in terminal decline, belong to an industry with endemic problems, or have other unfavorable valuations that make it unattractive as an investment. Read more...
Seth Klarmanโ€™s Baupost Group Buys AIG, Idenix Pharmaceuticals, Sells Hewlett-Packard, Oracle, Microsoft Seth Klarman - Seth Klarmanโ€™s Baupost Group Buys AIG, Idenix Pharmaceuticals, Sells Hewlett-Packard, Oracle, Microsoft
Renowned value investor Seth Klarman just reported his 4th quarter portfolio. He buys American International Group Inc, Idenix Pharmaceuticals, Inc., Viasat Inc, sells Hewlett-Packard Co, News Corporation, Oracle Corporation, Allied Nevada Gold Corp, Microsoft Corporation, Sycamore Networks, Inc. during the 3-months ended 12/31/2012, according to the most recent filings of his investment company, The Baupost Group. As of 12/31/2012, The Baupost Group owns 21 stocks with a total value of $3.1 billion. These are the details of the buys and sells. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 34.60
AIG's P/E(ttm) is ranked higher than
97% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 11.13 vs. AIG: 34.60 )
AIG' s 10-Year P/E(ttm) Range
Min: 0.6   Max: 35.99
Current: 34.6

0.6
35.99
P/B 0.70
AIG's P/B is ranked higher than
70% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.88 vs. AIG: 0.70 )
AIG' s 10-Year P/B Range
Min: 0.02   Max: 5.37
Current: 0.7

0.02
5.37
P/S 1.10
AIG's P/S is ranked lower than
84% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.58 vs. AIG: 1.10 )
AIG' s 10-Year P/S Range
Min: 0.03   Max: 34.62
Current: 1.1

0.03
34.62
PFCF 20.20
AIG's PFCF is ranked lower than
73% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 5.68 vs. AIG: 20.20 )
AIG' s 10-Year PFCF Range
Min: 0.14   Max: 193.67
Current: 20.2

0.14
193.67
EV-to-EBIT 14.5
AIG's EV-to-EBIT is ranked higher than
51% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 9.65 vs. AIG: 14.5 )
AIG' s 10-Year EV-to-EBIT Range
Min: 7.8   Max: 112
Current: 14.5

7.8
112
Shiller P/E 1.8
AIG's Shiller P/E is ranked higher than
95% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 11.90 vs. AIG: 1.8 )
AIG' s 10-Year Shiller P/E Range
Min: 1.21   Max: 24.85
Current: 1.8

1.21
24.85

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 6.4
AIG's Price/Net Current Asset Value is ranked higher than
86% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 3.60 vs. AIG: 6.4 )
AIG' s 10-Year Price/Net Current Asset Value Range
Min: 0.4   Max: 32.6
Current: 6.4

0.4
32.6
Price/Tangible Book 0.7
AIG's Price/Tangible Book is ranked lower than
57% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.85 vs. AIG: 0.7 )
AIG' s 10-Year Price/Tangible Book Range
Min: 0.1   Max: 4.9
Current: 0.7

0.1
4.9
Price/DCF (Projected) 0.4
AIG's Price/DCF (Projected) is ranked higher than
68% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.30 vs. AIG: 0.4 )
AIG' s 10-Year Price/DCF (Projected) Range
Min: 0.2   Max: 0.7
Current: 0.4

0.2
0.7
Price/Median PS Value 0.9
AIG's Price/Median PS Value is ranked higher than
59% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.90 vs. AIG: 0.9 )
AIG' s 10-Year Price/Median PS Value Range
Min: 0.1   Max: 7.6
Current: 0.9

0.1
7.6
Price/Graham Number 0.6
AIG's Price/Graham Number is ranked higher than
59% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 0.55 vs. AIG: 0.6 )
AIG' s 10-Year Price/Graham Number Range
Min: 0.2   Max: 2.7
Current: 0.6

0.2
2.7
Earnings Yield (Greenblatt) 6.90
AIG's Earnings Yield (Greenblatt) is ranked higher than
73% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 9.20 vs. AIG: 6.90 )
AIG' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.9   Max: 12.7
Current: 6.9

0.9
12.7
Forward Rate of Return (Yacktman) 137.61
AIG's Forward Rate of Return (Yacktman) is ranked higher than
97% of the 37 Companies
in the Global Insurance - Diversified industry.

( Industry Median: 16.21 vs. AIG: 137.61 )
AIG' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 30.5   Max: 463.2
Current: 137.61

30.5
463.2

Business Description

American International Group, Inc., a Delaware corporation, is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the United States and abroad. The Company's four reportable segments are as follows: General Insurance; Domestic Life Insurance & Retirement Services; Foreign Life Insurance & Retirement Services and Financial Services. The Company's General Insurance subsidiaries are multiple line companies writing substantially all lines of property and casualty insurance both domestically and abroad and comprises the Commercial Insurance and the Foreign General Insurance operating segments. The majority of AIG's General Insurance business is in the casualty classes, which tend to involve longer periods of time for the reporting and settling of claims. This may increase the risk and uncertainty with respect to AIG's loss reserve development. Commercial Insurance's business in the United States and Canada is conducted through American Home, National Union, Lexington and certain other General Insurance company subsidiaries of AIG. It's Domestic Life Insurance & Retirement Services segment, rebranded as SunAmerica Financial Group in December 2009, is comprised of several life insurance and retirement services businesses that market their products and services under the brands of American General, AGLA, VALIC, Western National, SunAmerica Retirement Markets, SunAmerica Mutual Funds, SunAmerica Affordable Housing Partners, FSC Securities, Royal Alliance and SagePoint Financial. It's Foreign Life Insurance & Retirement Services operations include insurance and investment-oriented products such as whole and term life, investment linked, universal life and endowments, personal accident and health products, group products, including pension, life and health, and fixed and variable annuities. The Foreign Life Insurance & Retirement Services products are sold through independent producers, career agents, financial institutions and direct marketing channels. Its Financial Services subsidiaries engage in diversified activities including aircraft leasing, capital markets, consumer finance and insurance premium finance. Together, the Aircraft Leasing, Capital Markets and Consumer Finance operations generate the majority of the revenues produced by the Financial Services operations. Its businesses operate in competitive environments, both domestically and overseas. Principal sources of competition are insurance companies, banks, investment banks and other non-bank financial institutions. The Company's operations around the world are subject to regulation by many different types of regulatory authorities, including insurance, securities, investment advisory, banking and thrift regulators in the United States and abroad.
Company Website
SEC Reports
Industry: Insurance - Diversified
Compare:BRK.A, ALIZF, AXAHY, ZFSVF, AIZ
Traded in other countries:8685.Japan, AINN.Germany

Personalized Checklist








Within your circle of competence?
Macro economic environment favorable?
High quality business?
Enough margin of safety with stocks?
Gurus are buying?
Insiders are buying?
Management capable and shareholder friendly?
Catalyst for stock price to appreciate?
Your level of confidence with the research?

GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names
Free 7-day Trial