American International Group Stock Is Fully Valued

American International Group Stock Is Fully Valued

NEW YORK CITY, NEW YORK, UNITED STATES - 2015/10/17: AIG or American International Group signage on ... [+] its building in New York. AIG is an American multinational insurance corporation with operations in 130 countries across the world. (Photo by Roberto Machado Noa/LightRocket via Getty Images) American International Group stock (NYSE: AIG) has gained around 37% YTD, increasing from about $38 at the beginning of 2021 to around $52 currently, significantly ahead of the S&P500, which grew 12% over the same period. Trefis estimates American International Group's valuation to be around $53 per share - marginally above the current market price. The stock gain in 2021 could be attributed to an, in general, positive investor outlook toward U. S. financial stocks. Further, the company has posted better than expected results in the first quarter of 2021. American International Group's revenue of $43. 7 billion for the full year 2020 was 12% lower than the 2019 figure. AIG is heavily dependent on its premiums and net investment income, like any other insurance company. It drives close to 65% of its revenues from premiums, in which the general insurance contributes the majority share. The general insurance premiums suffered an 11% y-o-y decline