# American International Group (AIG.US)

Canonical: https://gigainvestors.com/s/AIG

Analysis as of: 2026-10-16T07:26:19.216Z. Financial observations: FY2015–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $79.12 per share; close as of 2026-10-15.

Estimated value: low $2.06 per share, central $2.26 per share, high $2.51 per share. Buy at or below the central value $2.26 per share. Valuation as of 2026-10-16T07:26:19.216Z; scenarios are not confidence intervals.

Expected annual return: 0.3% at the stated quote. About 0.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- positive earnings in fewer than 8 of 10 years

- Financial history: 10 years

- Profitable years in the last ten: 5

- Required profitable years: 8

- Return on common equity variation (informational): 3.12×

Chart: Net income; fiscal year observations.

- FY2016: -$849M

- FY2017: -$6.1B

- FY2018: -$6.0M

- FY2019: $3.3B

- FY2020: -$6.0B

- FY2021: $10B

- FY2022: $10B

- FY2023: $3.6B

- FY2024: -$1.4B

- FY2025: $3.1B

### moat: fail

- Common book per share

- Parent-total proxy for preferred equity

- median return on common equity below threshold

- Bank / P&C ROTE, median of available years: 0.3%

- Required median return: 10.0%

- Return uses tangible common equity: No

- Bank ROTE, second-lowest year: -3.4%

- Years with reported combined ratio: 0

Chart: Return on common equity; fiscal year observations.

- FY2016: -1.1%

- FY2017: -9.3%

- FY2018: -0.0%

- FY2019: 0.7%

- FY2020: -1.1%

- FY2021: 1.8%

- FY2022: 25.2%

- FY2023: 8.0%

- FY2024: -3.4%

- FY2025: 7.5%

### economics: fail

- Common book per share

- Parent-total proxy for preferred equity

- book value per share plus dividends compounded below 7% annually

- Book value per share + reinvested dividends, annualized return: 2.3%

- Book return interval: 10 years

- Starting book value per share: $67.19

- Ending book value per share: $72.13

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 6.0%

- FY2017: 1.9%

- FY2018: -9.8%

- FY2019: 790.2%

- FY2020: 14.9%

- FY2021: 3.8%

- FY2022: -92.0%

- FY2023: 24.4%

- FY2024: 5.9%

- FY2025: 14.1%

### management: pass

- Common book per share

- Parent-total proxy for preferred equity

- Diluted shares, 10-year annual growth: -8.1%

- Diluted shares, 5-year annual growth: -8.1%

- Share growth excluding flagged crisis recapitalisations: -8.1%

- Five-year share growth excluding flagged crisis recapitalisations: -8.1%

- Flagged crisis recapitalisations: 0

- Book value created per share: $4.94

- Earnings retained per share after dividends and buybacks: -$45.76

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

The price assumes profits grow 9.7% a year forever · "AIG Beats Q2 Earnings Estimates on Robust Underwriting Income" (finance.yahoo.com, Aug 2026) · net income USD 3.1B

Story as of 2026-10-16T09:58:15.545Z; price observation 2026-10-15.

The price assumes profits grow 9.7% a year forever

- 2025-05-01: Insurer AIG's profit falls on Los Angeles wildfire losses ([finance.yahoo.com](https://finance.yahoo.com/news/insurer-aigs-profit-falls-los-202918069.html))

- 2025-08-06: Insurer AIG posts higher quarterly profit on underwriting strength ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/insurer-aig-posts-higher-quarterly-202038916.html))

- 2026-02-11: AIG Q4 Earnings Beat Estimates, Up Y/Y on Solid Underwriting ([finance.yahoo.com](https://finance.yahoo.com/news/aig-q4-earnings-beat-estimates-182600792.html))

### Net income · FY2025

net income USD 3.1B; source https://www.sec.gov/Archives/edgar/data/5272/000000527226000023/aig-20251231.htm; observed 2026-02-12.

- FY2016: -$849M 

- FY2017: -$6.1B 

- FY2018: -$6.0M 

- FY2019: $3.3B 

- FY2020: -$6.0B 

- FY2021: $10B 

- FY2022: $10B 

- FY2023: $3.6B 

- FY2024: -$1.4B 

- FY2025: $3.1B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in insurance diversified; annual sales are USD 26.8 billion.

- Source: https://www.sec.gov/Archives/edgar/data/5272/000000527226000023/aig-20251231.htm#000000527226000023 (filed 2026-02-12); FY2025: revenue 26775000000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AIG.US: American International Group, Inc. provides insurance products for commercial, institutional, and individual customers in North America and internationally. It operates through three segments: North America Commercial, International Commercial, and Global Personal. The company offers commercial and industrial property insurance, including business interruption and package insurance that cover exposure to made and natural disasters; general liability, environmental, commercial automobile liability, workers' compensation, excess casualty, and crisis management insurance products; risk-sharing and other customized structured programs for large corporate and multinational customers; professional liability insurance; and marine, energy-related property insurance products, aviation, political risk, trade credit, and trade finance products. It also provides group personal accident and business travel products for employees, associations, and other organizations; voluntary and sponsor-paid personal accident and supplemental health products for individuals; and personal auto and homeowners in selected markets, comprehensive extended warranty, device protection insurance, home warranty and related services, and insurance for high net-worth individuals. In addition, the company offers mortgage and other loans receivable, such as commercial mortgages, life insurance policy loans, commercial loans, and other loans and notes receivable. American International Group, Inc. was founded in 1919 and is headquartered in New York, New York.

### Why customers stay

It earns 0.3% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); 10-year return on tangible equity observations [[2016,-0.011127129750982963],[2017,-0.09335440610087309],[2018,-0.00010645659232447969],[2019,0.006798452258553765],[2020,-0.010890453668622438],[2021,0.018282330970671872],[2022,0.2518957638631592],[2023,0.0796895327556173],[2024,-0.033536370264104796],[2025,0.07525705534893896]]; median 0.0033459978331146427. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 5.8 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Dividend observations: [[2016,1372000000],[2017,1172000000],[2018,1138000000],[2019,1136000000],[2020,1132000000],[2021,1112000000],[2022,1011000000],[2023,1026000000],[2024,1024000000],[2025,976000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/5272/000000527226000023/aig-20251231.htm (filed 2026-02-12); FY2025: cash repurchases 5836000000 USD.

### Are managers owners

Insiders own 0.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); AIG.US SharesStats.PercentInsiders = 0.5519999999999999 percentage points; cache date 2026-10-16.

### What could break it

"AIG Parent’s ability to access funds from our subsidiaries is limited" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/5272/000000527226000023/aig-20251231.htm (filed 2026-02-12); AIG Parent’s ability to access funds from our subsidiaries is limited

### What the price says

The price assumes profits grow 9.7% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-12); Price 79.12; FX 1; original perpetual distributable cash 0.2260847886607257; discount 0.1; growth 0.09714250772673502. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $61.70 per share

- 2016-11: $63.33 per share

- 2016-12: $65.31 per share

- 2017-01: $64.26 per share

- 2017-02: $63.92 per share

- 2017-03: $62.43 per share

- 2017-04: $60.91 per share

- 2017-05: $63.63 per share

- 2017-06: $62.52 per share

- 2017-07: $65.45 per share

- 2017-08: $60.48 per share

- 2017-09: $61.39 per share

- 2017-10: $64.61 per share

- 2017-11: $59.96 per share

- 2017-12: $59.58 per share

- 2018-01: $63.92 per share

- 2018-02: $57.34 per share

- 2018-03: $54.42 per share

- 2018-04: $56.00 per share

- 2018-05: $52.79 per share

- 2018-06: $53.02 per share

- 2018-07: $55.21 per share

- 2018-08: $53.17 per share

- 2018-09: $53.24 per share

- 2018-10: $41.29 per share

- 2018-11: $43.25 per share

- 2018-12: $39.41 per share

- 2019-01: $43.23 per share

- 2019-02: $43.20 per share

- 2019-03: $43.06 per share

- 2019-04: $47.57 per share

- 2019-05: $51.07 per share

- 2019-06: $53.28 per share

- 2019-07: $55.99 per share

- 2019-08: $52.04 per share

- 2019-09: $55.70 per share

- 2019-10: $52.96 per share

- 2019-11: $52.66 per share

- 2019-12: $51.33 per share

- 2020-01: $50.26 per share

- 2020-02: $42.16 per share

- 2020-03: $24.25 per share

- 2020-04: $25.43 per share

- 2020-05: $30.06 per share

- 2020-06: $31.18 per share

- 2020-07: $32.14 per share

- 2020-08: $29.14 per share

- 2020-09: $27.53 per share

- 2020-10: $31.49 per share

- 2020-11: $38.44 per share

- 2020-12: $37.86 per share

- 2021-01: $37.44 per share

- 2021-02: $43.95 per share

- 2021-03: $46.21 per share

- 2021-04: $48.45 per share

- 2021-05: $52.84 per share

- 2021-06: $47.60 per share

- 2021-07: $47.35 per share

- 2021-08: $54.56 per share

- 2021-09: $54.89 per share

- 2021-10: $59.09 per share

- 2021-11: $52.60 per share

- 2021-12: $56.86 per share

- 2022-01: $57.75 per share

- 2022-02: $61.24 per share

- 2022-03: $62.77 per share

- 2022-04: $58.51 per share

- 2022-05: $58.68 per share

- 2022-06: $51.13 per share

- 2022-07: $51.77 per share

- 2022-08: $51.75 per share

- 2022-09: $47.48 per share

- 2022-10: $57.00 per share

- 2022-11: $63.11 per share

- 2022-12: $63.24 per share

- 2023-01: $63.22 per share

- 2023-02: $61.11 per share

- 2023-03: $50.36 per share

- 2023-04: $53.04 per share

- 2023-05: $52.83 per share

- 2023-06: $57.54 per share

- 2023-07: $60.28 per share

- 2023-08: $58.52 per share

- 2023-09: $60.60 per share

- 2023-10: $61.31 per share

- 2023-11: $65.81 per share

- 2023-12: $67.75 per share

- 2024-01: $69.51 per share

- 2024-02: $72.89 per share

- 2024-03: $78.17 per share

- 2024-04: $75.31 per share

- 2024-05: $78.82 per share

- 2024-06: $74.24 per share

- 2024-07: $79.23 per share

- 2024-08: $77.05 per share

- 2024-09: $73.23 per share

- 2024-10: $75.88 per share

- 2024-11: $76.88 per share

- 2024-12: $72.80 per share

- 2025-01: $73.66 per share

- 2025-02: $82.94 per share

- 2025-03: $86.94 per share

- 2025-04: $81.52 per share

- 2025-05: $84.64 per share

- 2025-06: $85.59 per share

- 2025-07: $77.63 per share

- 2025-08: $81.32 per share

- 2025-09: $78.54 per share

- 2025-10: $78.96 per share

- 2025-11: $76.16 per share

- 2025-12: $85.55 per share

- 2026-01: $74.88 per share

- 2026-02: $80.49 per share

- 2026-03: $75.25 per share

- 2026-04: $74.80 per share

- 2026-05: $74.23 per share

- 2026-06: $74.53 per share

- 2026-07: $78.58 per share

- 2026-08: $76.36 per share

- 2026-09: $74.42 per share

- 2026-10: $77.65 per share

## Annual estimated value (USD per share)

- FY2016: low $29.55 per share, central $32.51 per share, high $36.12 per share

- FY2017: low $24.13 per share, central $26.54 per share, high $29.49 per share

- FY2018: low $17.49 per share, central $19.24 per share, high $21.38 per share

- FY2019: low $141.59 per share, central $155.75 per share, high $173.06 per share

- FY2020: low $100.92 per share, central $111.01 per share, high $123.35 per share

- FY2021: low $8.43 per share, central $9.38 per share, high $10.57 per share

- FY2022: low $3.06 per share, central $3.36 per share, high $3.74 per share

- FY2023: low $6.33 per share, central $6.96 per share, high $7.73 per share

- FY2024: low $1.74 per share, central $1.91 per share, high $2.13 per share

- FY2025: low $1.92 per share, central $2.12 per share, high $2.35 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/5272/000000527226000023/aig-20251231.htm); period 2025-12-31, filed 2026-02-12.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.