I hear they have disposed nearly all the toxic debt repaid the gov bailout with interest and cleaned up nicely. The US gov have also since exited their investment in AIG.
Why buy it?
They planning to retire more debt and possibly resume dividends soon.
NAV is US$57 still a little bit undervalued from current price (risen from the depths of $20).
it's a laggard compared to other competitors
http://beta.fool.com/acardenal/2013/06/2...aig/38131/
Lastly interest rates are going to rise, when int rates rise stocks fall but companies like banks, insurance companies usually do well. Insurance companies make money from investing their free float in high interest bearing assets and AIG have around 375 million insurance premiums worth around US$1.9 trillion.
AIG highest peak was touching US$2000 a share.
Before it crashed to $20 it was US$400 a share.
Needless to say this is going to be a long term investment but if there are dividends it could be worthwhile to park some money around. And If interest rates rise over several years could also see strengthening of US$ so overall could lead to unexpected forex exchange gains.
Seems like a logical investment to go for.
(vested)
Why buy it?
They planning to retire more debt and possibly resume dividends soon.
NAV is US$57 still a little bit undervalued from current price (risen from the depths of $20).
it's a laggard compared to other competitors
http://beta.fool.com/acardenal/2013/06/2...aig/38131/
Lastly interest rates are going to rise, when int rates rise stocks fall but companies like banks, insurance companies usually do well. Insurance companies make money from investing their free float in high interest bearing assets and AIG have around 375 million insurance premiums worth around US$1.9 trillion.
AIG highest peak was touching US$2000 a share.
Before it crashed to $20 it was US$400 a share.
Needless to say this is going to be a long term investment but if there are dividends it could be worthwhile to park some money around. And If interest rates rise over several years could also see strengthening of US$ so overall could lead to unexpected forex exchange gains.
Seems like a logical investment to go for.
(vested)