American International Group

Methodology

AIG's commercial and personal insurance earnings fluctuate with catastrophes, reserve adjustments, and underwriting cycles. Restructuring improved stability but legacy issues create unpredictability. Normalized mid-cycle combined ratios provide more reliable baselines than recent results which may include one-time items or unusual loss years.

Methodology

AIG's PEG can appear deceptively low after strong rebounds or reserve releases, but insurance volatility makes growth extrapolation problematic. The company trades at discounts reflecting execution concerns and legacy risk perception. For AIG, price-to-book relative to return on equity provides better insight than earnings-based metrics.

Methodology

AIG's dividend adds some return cushion though it was cut during crisis restructuring and remains below historical levels. Capital return capacity depends on underwriting performance and regulatory requirements. PEGY provides modest context, though dividend sustainability and book value growth matter more for this turnaround story.