American International Group Inc
AIG: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$76.00 | Fvp | Nvjxwscm |
AIG Earnings: Underwriting Profitability Leveling Out
AIG produced another strong quarter, in our view, and the company continues to advance toward generating an acceptable return on a sustained basis. For the quarter, the adjusted annualized return on equity was 9%, or 10% on a tangible basis. We believed for some time that the company had a path toward acceptable returns, and this quarter suggests AIG is almost there. We will maintain our $65 fair value estimate for the no-moat company and see shares as undervalued.