American International Group: Fairly Valued Even If Chubb M&A Rumors Don't Materialize
Summarize this article with:
Seeking Profits5.1K FollowersFollow5ShareSavePlay(9min)CommentsSummaryAmerican International Group remains a 'Hold' as M&A speculation drives shares to fair value, with limited near-term upside.Chubb's informal approach validates AIG's turnaround, but regulatory hurdles and disciplined pricing make a deal unlikely.AIG's underwriting has improved, with Q3 earnings beating estimates and combined ratios at multi-year lows, though further margin expansion appears challenging.With ongoing buybacks, a 2.2% yield, and stable margins, AIG offers market-like returns but lacks a near-term catalyst.
Getty Images Shares of American International Group (AIG) have been a solid performer over the past year, gaining about 13%. Most of these gains have materialized over the past few days amid reports that Chubb (CB) reached out toThis article was written bySeeking Profits5.1K FollowersFollowOver fifteen years of experience making contrarian bets based on my macro view and stock-specific turnaround stories to garner outsized returns with a favorable risk/reward profile. If you want me to cover a specific stock or have a question for an article, just let me know!Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You