Forecast Of The Day: AIG’s International Net Premiums Earned

+20.50%
Upside
56.93
Market
68.60
Trefis
AIG: American International Group logo
AIG
American International Group

What?

AIG’s (NYSE:AIG) International Net Premiums Earned from its General Insurance business declined from around $14.3 billion in 2019 to around $13.4 billion in 2020. Trefis expects the metric to recover to around $14 billion in 2021 and to about $14.1 billion in 2022.

Why?

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While the decline in 2020 was due to the Covid-19 pandemic, we expect premiums earned to recover from 2021 as Covid-19 vaccination rates improve and the global economy continues to open up. We expect longer-term growth to be driven by the company’s expanding operations in high-growth economies in Asia.

So What?

We value AIG at about $57 per share, about 5% ahead of the current market price.

See Our Complete Analysis For AIG

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 Returns Dec 2021
MTD [1]
2021
YTD [1]
2017-21
Total [2]
 AIG Return -8% 44% -17%
 S&P 500 Return 1% 26% 111%
 Trefis MS Portfolio Return 0% 44% 288%

[1] Month-to-date and year-to-date as of 12/12/2021
[2] Cumulative total returns since 2017

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