John C. Inglis, a director at American International Group, Inc. (NYSE:AIG), has acquired 660 shares of the company's common stock. The transaction, which took place on November 26, 2024, involved a total value of $50,001, with each share priced at $75.76. Following this purchase, Inglis now holds a total of 1,333 shares in AIG directly.
In other recent news, American International Group (AIG) demonstrated strong financial performance in the third quarter of 2024, with a 31% year-over-year increase in adjusted after-tax income to $798 million and a 19% rise in consolidated net investment income to $897 million. AIG's underwriting income reached $437 million, and the firm's calendar year combined ratio was a commendable 92.6%. Despite the impact from natural catastrophes, AIG managed to trim its CAT losses by 80% compared to 2012. AIG is also launching AIG Next (LON:NXT), aiming to streamline operations and achieve $500 million in savings by 2025. The company anticipates a core operating return on equity of 10% for 2025. Keefe, Bruyette & Woods has updated their outlook on AIG, reducing the price target slightly from $88.00 to $87.00 but maintains an Outperform rating for the insurance giant's shares. The firm has also revised its earnings per share (EPS) estimates for AIG, increasing the 2024 EPS estimate to $5.10, up from $4.85, while lowering projections for 2025 and 2026 to $6.70 and $7.70, respectively. These recent developments highlight AIG's robust financial health and future growth potential.
InvestingPro Insights
John C. Inglis's recent acquisition of AIG shares aligns with several positive indicators for the company. According to InvestingPro data, AIG's market capitalization stands at $47.49 billion, reflecting its significant presence in the insurance industry. The company's P/E ratio (adjusted) of 11.86 for the last twelve months suggests a relatively attractive valuation compared to historical norms.
InvestingPro Tips highlight that AIG has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns. This consistency may have factored into Inglis's decision to increase his stake. Additionally, analysts predict the company will be profitable this year, which could signal confidence in AIG's financial health and future performance.
However, it's worth noting that 8 analysts have revised their earnings downwards for the upcoming period, indicating some caution in short-term expectations. Despite this, AIG's revenue growth of 38.75% over the last twelve months showcases the company's ability to expand its business in a challenging environment.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips on AIG, providing deeper insights into the company's prospects and potential risks.
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