American International Group (AIG, $50.30) delivers an estimate-smashing quarter
Shares of American International Group surged 7.6% in the after-hours trading Tuesday, after the company reported an adjusted EPS of $1.58 in the first quarter that beat consensus estimates of $1.06 and was also higher than $1.04 in the same quarter a year ago.
The first quarter consolidated net investment for the company stood at $3.9 billion compared to $3.3 billion in the year-ago quarter, reflecting favorable market conditions.
The company’s CEO justified the performance by saying that its underwriting and expense discipline, coupled with improved business mix and reinsurance actions, are the reasons for General Insurance’s achievement. He expects that this performance will be sustained for the rest of the year.
Many analysts have observed that Life and Retirement continue to deliver an adjusted low-mid-ROCE and a two-digit adjusted ROCE for consolidated AIG within three years. Q1 adjusted ROCE came at 11.6% compared to 7.7% in the year-ago quarter, while core adjusted ROCE was 13.4% vs. 8.6% in the same previous quarter.
The company’s book value adjusted per ordinary share of $ 55.47 as of March 31, 2019 fell from $ 56.10 as of March 31, 2018.
Momentum Indicator for AIG turns positive, indicating new upward trend
AIG saw its Momentum Indicator move above the 0 level on May 09, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 92 similar instances where the indicator turned positive. In of the 92 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for AIG just turned positive on May 02, 2025. Looking at past instances where AIG's MACD turned positive, the stock continued to rise in of 55 cases over the following month. The odds of a continued upward trend are .
AIG moved above its 50-day moving average on May 09, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AIG advanced for three days, in of 343 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 343 cases where AIG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for AIG moved out of overbought territory on April 03, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 73 cases where AIG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 10-day moving average for AIG crossed bearishly below the 50-day moving average on May 07, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AIG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
AIG broke above its upper Bollinger Band on May 02, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 37, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. AIG’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.178) is normal, around the industry mean (2.084). P/E Ratio (15.590) is within average values for comparable stocks, (15.920). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (6.024). AIG has a moderately low Dividend Yield (0.019) as compared to the industry average of (0.054). P/S Ratio (1.192) is also within normal values, averaging (1.427).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a global insurance company, which provides property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services
Industry MultiLineInsurance