BMO Upgrades AIG to Outperform Citing Protection Limits and Reinsurance Reliance

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American International ($NYSE:AIG) Group (AIG) is one of the world’s leading insurance and financial services companies. Recently, the Bank of Montreal (BMO) upgraded its rating of the company’s stock from Market Perform to Outperform. This decision was based on AIG’s protection limits and reliance on reinsurance. AIG is well-known for its extensive insurance coverage, which is often times considered to be one of the best in the industry. The company has consistently maintained high protection limits, even in the face of economic downturns. This means that AIG is able to offer its customers more coverage and peace of mind, which further strengthens its reputation.

Furthermore, BMO took into account AIG’s reliance on reinsurance. The company has been able to secure cost-effective and reliable reinsurance contracts through its global network of partners. This has helped to minimize the risk associated with offering large insurance policies. This upgrade is a testament to the company’s strength and stability, and is a positive sign for those interested in investing in the company’s stock.

Stock Price

Tuesday saw a jump in the stock of AMERICAN INTERNATIONAL (AIG), when credit giant BMO upgraded the company’s rating to Outperform. The stock opened at $67.2 and closed at $67.4, an increase of 1.5% from the previous closing price of 66.5. The protection limits that AIG has put in place are extensive, both in terms of the products and services they provide and in terms of the geographic scope of their coverage. AIG is able to offer a wide range of products and services to customers around the world, providing them with protection and peace of mind.

Additionally, their reliance on reinsurance markets provides an extra layer of safety for AIG and its customers. These two factors, combined with the other strengths of AIG, led BMO to upgrade the rating. This move has been seen as a positive sign for the company, as it could potentially lead to increased investor confidence and further growth in the future. The stock increase also suggests that investors are responding positively to the news. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for American International. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for American International. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for American International. More…

Key Ratios Snapshot

Some of the financial key ratios for American International are shown below. More…

Analysis

GoodWhale conducted a comprehensive analysis of AMERICAN INTERNATIONAL‘s fundamentals. According to our Star Chart, the company is strong in dividend but weak in asset growth, profitability, and other growth metrics. AMERICAN INTERNATIONAL has an intermediate health score of 6/10, which indicates that it may be able to sustain future operations in times of crisis. Based on our evaluation, we have classified AMERICAN INTERNATIONAL as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. This makes AMERICAN INTERNATIONAL an ideal choice for investors who are searching for a reliable dividend income. 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

BMO has upgraded its rating of American International Group (AIG) from Neutral to Outperform due to the insurance giant’s reliance on protection limits and reinsurance. AIG is currently the world’s leading international insurance organization, providing a range of property casualty insurance, life insurance, retirement products, mortgage insurance, and other financial services. BMO believes that AIG’s strong reliance on protection limits and reinsurance will enable it to benefit from favorable conditions in the market over time.

Additionally, the firm expects AIG’s strong balance sheet and competitive positioning to drive a return to its historical profitability figures. Investors should take advantage of this new rating from BMO and consider AIG as a viable option for their portfolios.