Tomahawk, WI 8/05/2013 (Basicsmedia) – American International Group Inc (NYSE:AIG) offers to its U.S and international clients, insurance products, services and solutions. It has been doing this for close to a century since its founding in 1919, with New York, New York being the place where its headquarters has been set up. Its services are offered as part of the companies and businesses which work within the property and casualty insurance industry and inside the financial sector. It has a roll of full time employees numbering more than 63,000. In this article, let’s take a look at the best way in which you should handle the company’s shares going forward.

Common AIG Competitors

A few competitors which AIG has to deal with include Allianz SE, AXA Group and Zurich Insurance Group AG. AIG comes a very close second to Allianz in the market capitalization where the former has 71.35 billion compared to the latter’s 72.37 billion. This is better than what AXA group has which stands at around 54.06 billion. In terms of revenue, all the other three companies perform much better than AIG. However, with all these, one would still need to take a look at whether there is any reason why AIG’s stock is truly able to support a higher price or not. This will help you to know how to treat these shares.

Was AIG Affected by the 2008 Financial Crisis?

Just like other major global companies, especially those operating within the financial sector, AIG went through a tough time as a result of the 2008 financial crisis. The beauty of this experience is that it helped the company to restructure itself and come out the better. Nowadays, there is very little to show on whether the company was truly affected and the extent of the whole thing. The future outlook is also quite good, and we have every reason to believe that the company is in the best business since the needs for insurance will probably never diminish as more needs and risks keep cropping up every now and then.

It is worth noting that AIG is on the right path towards recovery. Currently, it has reported a divided for every share held and this is the first time such a thing is taking place since the financial crisis of 2008. It was given a bailout package by the government totaling $182.3 billion, and to show that it is on the right footing, it recently paid this money back. Its profit also jumped by more than 17% while it had authorized a $1 billion worth of stock repurchase. The average estimates had indicated that this company would report operating profit of $0.86 but AIG actually reported $1.12 per share. This is impressive.


This picture, courtesy of, shows insurance companies by market cap.

My recommendation would be that AIG shares are not to be discarded at this time. This is a company which is truly on the mend and actively pursuing its path towards recovery. Thus far, it has demonstrated that it is more than capable of doing this with little fuss. It has been successful and this is what matters more than anything else. Hold on to it dearly.

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