American International Intrinsic Value Calculator – AIG and Stone Point Capital Join Forces to Create Private Client Select Insurance Services for High Net Worth and Ultra High Net Worth Markets.
February 14, 2023
Trending News ☀️
American International Intrinsic Value Calculator – AMERICAN ($NYSE:AIG): The company provides a broad range of property, casualty, life insurance and retirement solutions. On Monday, AIG announced the creation of an independent managing general agency, Private Client Select Insurance Services, in partnership with private equity firm Stone Point Capital. The newly formed company will target high net worth and ultra high net worth markets by offering comprehensive insurance solutions that focus on the unique needs of clients. No terms of the agreement were revealed. Private Client Select Insurance Services will join AIG’s Private Client Group, which provides tailored protection and services to customers with complex personal insurance needs.
The new undertaking comes as part of AIG’s ongoing efforts to capitalize on the opportunities in the high net worth space. The company believes that Private Client Select Insurance Services will help to expand AIG’s presence in the market and offer customers more customizable solutions. The managing general agency will be staffed with experienced underwriters and brokerage executives who will specialize in providing services for the high net worth and ultra high net worth segments. The company is confident that its partnership with Stone Point Capital will help to further strengthen its position in the market, while enhancing its ability to meet the needs of its customers.
Market Price
This news has been well-received, with market observers noting the potential for growth in this area. On Monday, AIG’s stock opened at $61.4 and closed at $62.0, providing a 1.0% increase from the prior closing price of $61.3. The joint venture will provide an array of insurance services and coverages designed to meet the needs of high-net-worth and ultra-high-net-worth individuals, including customized solutions for automobiles, homes, jewelry, art, collectibles, and more. These offerings will address the growing demand for specialized protection for valuables and collections, as well as the unique risks associated with each item.
The venture is expected to bring together AIG’s expertise in risk management solutions and Stone Point Capital’s experience in developing and managing specialty insurance products. The combined offerings will be tailored to meet the specific needs of each customer, providing a comprehensive suite of services and coverage options. With its combination of expertise and specialized offerings, the venture is likely to become a leader in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for American International. More…
| Total Revenues | Net Income | Net Margin |
| 58.95k | 13.72k | 20.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for American International. More…
| Operations | Investing | Financing |
| 4.53k | -2.62k | -2.55k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for American International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 522.93k | 481.93k | 52.22 |
Key Ratios Snapshot
Some of the financial key ratios for American International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.3% | – | 34.2% |
| FCF Margin | ROE | ROA |
| 7.7% | 29.9% | 2.4% |
Analysis – American International Intrinsic Value Calculator
GoodWhale has conducted an analysis of American International‘s wellbeing. Our proprietary Valuation Line has calculated the intrinsic value of American International’s share to be around $60.8. Accordingly, the current trading price of $62.0 for American International stock is slightly overvalued by 1.9%. The analysis has taken into account key factors, such as American International’s revenue, profitability, financial strength and competitive advantages. Furthermore, GoodWhale has taken into account the company’s current market capitalization, earnings, dividends and other essential factors. All of these have been weighed against the company’s potential growth to ascertain the intrinsic value of the company’s stock. GoodWhale’s analysis also considers the performance of American International in comparison to similar companies in its industry, as well as its competitors. This helps to understand the potential opportunities and risks associated with investing in American International’s stock. Additionally, the report considers the overall macroeconomic environment and assesses the potential implications of this on American International’s stock price. Overall, the analysis concludes that American International’s stock is trading at a fair price and is slightly overvalued by 1.9%. This gives investors an informed basis on which to make decisions about whether to buy or sell American International stocks. More…
Peers
Its competitors include Old Republic International Corp, UNIQA Insurance Group AG, and Zavarovalnica Triglav DD.
– Old Republic International Corp ($NYSE:ORI)
Old Republic International Corp is a holding company that operates in three segments: Insurance Group, Title Insurance Group, and the Commercial Group. The Insurance Group offers property and casualty insurance products, such as automobile and homeowners insurance, to individuals and businesses in the United States. The Title Insurance Group provides title insurance and related real estate products and services in the United States. The Commercial Group offers a range of products and services, including surety bonds, commercial credit insurance, and commercial title insurance.
– UNIQA Insurance Group AG ($LTS:0GDR)
UNIQA Insurance Group AG is one of the leading insurance groups in Austria and Central and Eastern Europe with a market share of around 15 per cent. The Group is represented in more than 20 countries with around 9,000 employees. In the 2019 financial year, UNIQA generated gross premiums written of EUR 5.6 billion. UNIQA Group is part of UNIQA Insurance Group AG.
– Zavarovalnica Triglav DD ($LTS:0KFO)
Triglav is the largest Slovenian insurance company and one of the leading insurers in the Adriatic region. It has been operating for over 125 years and offers a wide range of insurance products for individuals, families and businesses. Triglav is also active in the field of asset management. The company’s share is listed on the Prague and Ljubljana Stock Exchanges.
Triglav’s market capitalization is 726.75 million as of 2022. The company’s return on equity is 10.44%. Triglav is a leading insurer in the Adriatic region with a wide range of insurance products for individuals, families and businesses. The company is also active in asset management.
Summary
American International Group (AIG) has recently partnered with Stone Point Capital to create Private Client Select Insurance Services, a product tailored for the high net worth and ultra high net worth markets. The product provides clients with access to a variety of insurance services, such as life insurance, property and casualty insurance, and financial planning. Analysts believe this move will be beneficial for AIG, as it is likely to attract more customers from this market segment, while also increasing the company’s market share in the private client sector.
Furthermore, AIG stands to benefit from Stone Point Capital’s extensive experience in the industry, which should help them expand their reach further. This strategic move is expected to boost AIG’s earnings and shareholder value in the long run.
