American International Group Inc
AIG: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $15.00 | Jpg | Bnmqsyd |
AIG Maintains P&C Underwriting Momentum in Second Quarter
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American International Group showed ongoing improvement in terms of property and casualty underwriting results, but capital market conditions were a drag on investment income and life insurance results. The net effect was an annualized adjusted return on equity of 7% in the quarter. While the ROE wasn’t impressive, we see fixing P&C underwriting as the key long-term issue for AIG and therefore view the results this quarter as a positive. We will maintain our $65 fair value estimate and no-moat rating.