American International GroupAIG -1.69%63 Interest Coverage is 10.87 as of Mar. 2026, which is 66% above its 10-year median of 6.56. GuruFocus rates AIG with a GF Score™ of 63/100 and a GF Value™ of $94.07 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 351 Insurance companies, American International Group ranks worse than 61.82% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
EBIT
by its Interest Expense. American International Group's
EBIT
for the
three
months ended in Mar. 2026 was $1,087 Mil. American International Group's Interest Expense for the
three
months ended in Mar. 2026 was $-100 Mil.
American International Group's interest coverage for the quarter that ended in Mar. 2026 was 10.87.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for American International Group's Interest Coverage or its related term are showing as below:
AIG'
s Interest Coverage Range Over the Past 10 Years
Min: 0.94 Med: 6.56 Max: 11.23
Current: 10.67
AIG's Interest Coverage is ranked worse than 61.82% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs AIG: 10.67
American International Group (NYSE:AIG) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
American International Group Interest Coverage Related Terms
American International Group Interest Coverage Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
American International Group Interest Coverage Chart
AIG vs HIG, ACGL, PLGO: Interest Coverage Comparison
For the Insurance - Diversified subindustry, American International Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
American International Group Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, American International Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where American International Group's Interest Coverage falls into.
American International Group Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
American International Group (AIG) has a Interest Coverage of 10.87 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American International Group and its competitors. This is 66% above median its historical median of 6.56. Over the past decade, American International Group's Interest Coverage has ranged from 0.94 to 11.23. According to the industry distribution chart, American International Group ranks #217 out of 351 companies in the Insurance industry, placing it in the top 61.8%.
Is American International Group's Interest Coverage too high?
American International Group's current Interest Coverage of 10.87 is 66% above median its 10-year median of 6.56. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 11.23. The Insurance industry median Interest Coverage is 16.23. American International Group's value of 10.87 is 33% below this industry median. Based on the distribution chart, American International Group ranks #217 out of 351 companies in the Insurance industry, which is below the industry midpoint. Overall, American International Group has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does American International Group's Interest Coverage compare to HIG and ACGL?
According to the Insurance industry distribution chart, American International Group ranks #217 out of 351 companies for Interest Coverage. This places American International Group in the lower half of its industry. The industry median Interest Coverage is 16.23. American International Group's value of 10.87 is 33% below this benchmark. Historically, American International Group's own Interest Coverage has ranged from 0.94 to 11.23 over the past decade. While the company's 10-year median is 6.56 vs. the industry median of 16.23, American International Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. American International Group's current Interest Coverage of 10.87 is 33% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on American International Group and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American International Group's current Interest Coverage is 10.87, which is 66% above median its own 10-year median of 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American International Group stock overvalued right now?
Based on GuruFocus' analysis, American International Group (AIG) is currently considered Modestly Undervalued. The stock's GF Value™ is $94.07, compared to a current price of $74.85 — trading 20.4% below its estimated fair value. The current Interest Coverage is 10.87, which is 66% above median its 10-year median of 6.56 and 33% below the Insurance industry median of 16.23. American International Group's overall GF Score™ is 63/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For American International Group (AIG), the current Interest Coverage is 10.87 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is American International Group (AIG) Overvalued in 2026?
Based on GuruFocus' analysis, American International Group stock appears to be undervalued.
The current stock price of $74.85 is trading 20.4% below its estimated GF Value™ of $94.07.
GuruFocus considers American International Group to be Modestly Undervalued.
Key valuation signals for AIG:
Interest Coverage: 10.87 (66% above median its 10-year median of 6.56)
GF Value™: $94.07 vs. price of $74.85 (20.4% below fair value)
Industry Position: 33% below the Insurance median (#217 of 351)
No single metric tells the full story. See the AIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American International Group is one of the largest insurance and financial services firms in the world and has a global footprint. It operates through a wide range of subsidiaries that provide property, casualty, and life insurance. The company recently spun off its life insurance operations (Corebridge), but still retains a minority stake.
63GF Score
Get the complete analysis for AIG
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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