The company has lost billions and billions of market capitalization in the past decade. In more recent time, the SIFI label removal last year did not actually help its business growth. The insurer’s exposure to several natural calamity affected its profits—failing to meet analyst expectations in the past four quarters (a year). Some long-term investment funds have slowly trimmed exposure to the stock. The recent California fire also presents risks to the insurer.
It has not been pretty for the once mammoth financial firm.
Mark your calendars, AIG is expected to report its fourth quarter results on January 30, 2018 4:15 ET with consensus EPS estimates of $0.79 a share.
Topping nearly $193 billion in market capitalization before the tech bubble burst in 2000s, the now $31 billion American International Group (NYSE:AIG) appears it could be a great value pick. Current operations, meanwhile, indicate otherwise.
More than a year and two months after the Federal regulators removed AIG’s SIFI (systemically important financial institution) or “too big to fail” label, the company has yet to deliver for its shareholders.
Investors who have bet that AIG would generate more business since the company’s exclusion from the SIFI label have suffered 34% loss, including dividends, greatly underperforming the S&P 500 index’s +7.84% in the same period.
AIG also had consistently missed analyst estimates in the past year.
In the recent quarter alone, the company registered catastrophe losses in Japan—as the insurer is the largest foreign-based insurer in the country, Hurricane Florence, and California.