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American International Group

AIG
52
Insurance - Diversified · Financial Services
Price
$80.50
+2.47 (+3.17%)
Market Cap
$42.68B
Winston Score
52
Winston is curious
Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

34.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 864.9M (2021) → 570.3M (2025)

American International Group, or AIG, is one of the largest insurance companies in the world. It sells insurance products to businesses and individuals, helping them protect against risks like property damage, liability lawsuits, and financial losses. AIG is especially known for its commercial insurance, which covers large corporations, and it operates across dozens of countries.

AIG makes money by collecting premiums from customers and investing that money until claims need to be paid. The company operates globally, with a strong presence in North America, Europe, and Asia, and its scale gives it an advantage in pricing complex, large-scale risks that smaller insurers cannot easily handle. AIG has spent recent years simplifying its business after a major government bailout during the 2008 financial crisis, and its main challenge going forward is improving profitability in a competitive market where rising catastrophe losses from events like hurricanes and wildfires continue to pressure insurance payouts.

Winston Score History

Politician Trades

7 trades / 12mo

3 Congressional buys and 4 sells on AIG in the last 12 months.

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Score breakdown

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Quality

Gross Margin
47.7%
Healthy — 47.7% gross margin
Operating Margin
14.8%
Healthy — 14.8% operating margin
ROCE
2.0%
Weak — 2.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
-2.3%
Shrinking sales (-2.3% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion
112%
Turns 112% of profit into real cash
FCF Margin
13.2%
Converts sales into free cash efficiently (13.2%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
0.23
Conservative — low debt load (0.23)
Interest Cover
9.67x
Comfortably covers interest (9.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
14.1x
Attractive valuation — P/E 14.1

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward
+4.6
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (14.1 → 9.5)

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Dividends

Dividend Yield
2.43%
Moderate income — 2.43% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend Growth
+12.1%
Dividend growing fast (12.1% YoY)

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