American International Group, Inc. AIG
Verdict: Sell. Fair value $77.60 against a price of $84.27 on 5 Jan 2026, 8% below the price.
In plain words
The case for: Market leadership enables pricing power.
The case against: Intense competitive pressure could compress margins. Net Income swung from +$10.23B in 2022 to -$1.40B in 2024, indicating earnings are driven by.... Revenue dropped 42% from $51.98B (2021) to $29.98B (2022), indicating massive divestitures (likely....
Main risks
- Significant volatility in profitability (swing from $10B profit to $1.4B loss in 2 years)
- Structural revenue decline (-19% 3yr CAGR) likely due to divestitures/Corebridge separation
- Negative TTM Return on Equity (-3.3%) and Net Margins (-5.1%)
- Net Income swung from +$10.23B in 2022 to -$1.40B in 2024, indicating earnings are driven by...
- Revenue dropped 42% from $51.98B (2021) to $29.98B (2022), indicating massive divestitures (likely...
- Intense competitive environment