Product diversification helps Zacks Multiline Insurance industry players lower concentration risk, ensure uninterrupted revenue generation and improve retention ratio. Better pricing, prudent underwriting, increased exposure and faster economic recovery should benefit MetLife Inc. (MET) , American International Group Inc. (AIG) , Prudential Financial Inc. (PRU) , The Hartford Financial Services Group (HIG) and Assurant Inc (AIZ) . Accelerated digitalization will help in the smooth functioning of the industr ...

Core Insights - American International Group, Inc. (AIG) is positioned for growth due to strong performance in its Global Commercial business, rising net investment income, and new business growth [1] - The company benefits from strong results in its General Insurance business and improved insurance rates, while divestitures are streamlining operations and enhancing capital allocation [1] Financial Performance - AIG has a Zacks Rank of 3 (Hold) and its stock has increased by 24.6% over the past six months, outperforming the industry growth of 15.9% [2] - The Zacks Consensus Estimate for AIG's 2024 earnings per share is $7.11, reflecting a 4.7% increase from the previous year's $6.79, with 2024 revenue estimates at $49.2 billion [3] Revenue Drivers - A significant portion of AIG's revenue comes from premiums, expected to grow due to strong performance in commercial lines and rate increases [4] - Total revenues are projected to grow by 9.9% year-over-year in 2024, with the General Insurance segment contributing 56.2% of adjusted revenues in 2023 [5] Investment Income - Total net investment income rose by 24% year-over-year in 2023, with expectations for an 8% increase in 2024 due to a high-interest rate environment [6] - AIG aims for a 10% plus adjusted return on capital employed, achieving a 2023 adjusted ROCE of 9%, up from 7.1% in 2022 [6] Capital Management - The company returned $3 billion to shareholders through repurchases and $1 billion in dividends in 2023, indicating a balanced capital management strategy [7] - AIG's total debt stands at $19.8 billion against a cash balance of $2.2 billion, with an anticipated 11% rise in interest expenses for 2024 [7] Competitive Landscape - Other notable stocks in the insurance sector include CNO Financial Group, Erie Indemnity Company, and Assurant, with varying Zacks Ranks and earnings performance [8][9]

A month has gone by since the last earnings report for American International Group (AIG) . Shares have added about 9.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is American International Group due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. AIG Q4 Earnings Be ...

Industry Overview - The primary metals industry is attracting traders and investors seeking value, with a notable 13% rally in mining and metal stocks over the past two quarters driven by favorable market conditions [2] - Analysts are optimistic about precious metals stocks, projecting double-digit upside potential in the coming months as they gain attention amidst the technology stock craze [2][3] Economic Indicators - Recent ISM manufacturing PMI data indicates significant expansion in the primary metals industry, with three consecutive months of growth readings suggesting an accelerating trend [4] - Export orders in February expanded by 6.4%, contributing to economic growth and indicating stronger demand for metals [4] Stock Highlights - Uranium Energy is projected to have nearly 40% upside potential, with a price target of $8.8, as demand for alternative energy sources rises [6] - MP Materials is expected to see 87% growth in earnings per share (EPS) over the next twelve months, with a price target of $27.3, suggesting an 80% upside [6] - Wheaton Precious Metals is anticipated to grow its EPS by 12.5% in the next year, with a price target of $52.7, indicating an 18% upside [6]

Core Viewpoint - The article highlights stocks that are recommended for purchase during a recession, emphasizing their ability to enhance portfolio stability and safety regardless of overall economic sentiment [1] Group 1: Stocks Recommended for Recession - PepsiCo (PEP) has a strong dividend yield of 3.1% and projects 4% organic revenue growth for 2024, alongside at least 8% core constant currency EPS growth [2] - Altria (MO) offers a high dividend yield of 9.5% and has reaffirmed its 2024 earnings guidance, expecting adjusted diluted EPS between $5 and $5.15, indicating a growth rate of 1% to 4% from the previous year [5][6] - American International Group (AIG) anticipates robust investment income of at least $750 million per quarter in 2024, with a forecasted EPS increase of 50.7% to $7.51 per share [7][8] Group 2: Company Characteristics - PepsiCo's product mix and branding ensure its resilience during economic downturns, making it a reliable choice for investors [2] - Altria's focus on dividends and share repurchase programs positions it as a stable investment, despite a declining stock price [5][6] - AIG's strong liquidity of $3.6 billion and executed share repurchases of $785 million in Q3 2023 enhance its attractiveness as a recession-proof investment [7][8] Group 3: Analyst Predictions - Analysts predict a modest upside for PepsiCo, with a consensus "Buy" rating and an expected share price increase of 17.2% over the next twelve months [3] - AIG is expected to see a slight top-line expansion of 8.5% alongside significant EPS growth, indicating positive investor sentiment [8]

American International Group, Inc. (AIG) reported fourth-quarter 2023 adjusted earnings per share of $1.79, which outpaced the Zacks Consensus Estimate by 12.6%. The bottom line jumped 31.6% year over year.Operating revenues inched up 4.6% year over year to $12.7 billion in the quarter under review. The top line beat the consensus mark by 9.7%.The strong quarterly results were aided by strong underwriting results in the International business and North America Personal Insurance business of the General Insu ...

American International Group, Inc. (NYSE:AIG) Q4 2023 Earnings Conference Call February 14, 2024 8:30 AM ET Company Participants Quentin McMillan - Vice President, Managing Director and Head of Investor Relations Peter Zaffino - Chairman & Chief Executive Officer Sabra Purtill - Executive Vice President & Chief Financial Officer David McElroy - Executive Vice President & Chief Executive Officer, General Insurance Conference Call Participants Michael Zaremski - BMO Meyer Shields - KBW Elyse Greenspan - Wells ...

Fourth Quarter and Full Year 2023 Financial Results Presentation February 14, 2024 Copyright ® 2024 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. Group Performance Strategy Capital 4Q’23 Results FY’23 Results Investments Fourth Quarter Operating EPS* Increased 29% from Prior Year ...

For the quarter ended December 2023, American International Group (AIG) reported revenue of $12.72 billion, up 4.6% over the same period last year. EPS came in at $1.79, compared to $1.36 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $11.6 billion, representing a surprise of +9.65%. The company delivered an EPS surprise of +12.58%, with the consensus EPS estimate being $1.59.While investors closely watch year-over-year changes in headline numbers -- revenue and ear ...

Core Viewpoint - American International Group (AIG) reported strong quarterly earnings, exceeding expectations and showing growth compared to the previous year [1][2]. Financial Performance - AIG's quarterly earnings were $1.79 per share, surpassing the Zacks Consensus Estimate of $1.59 per share and up from $1.36 per share a year ago, representing an earnings surprise of 12.58% [1]. - The company posted revenues of $12.72 billion for the quarter, exceeding the Zacks Consensus Estimate by 9.65% and up from $12.17 billion year-over-year [1]. Market Performance - AIG shares have increased by approximately 2.9% since the beginning of the year, while the S&P 500 has gained 5.3% [2]. - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.71, with expected revenues of $12 billion, and for the current fiscal year, the EPS estimate is $7.21 on revenues of $48.26 billion [4]. - The trend of estimate revisions for AIG is mixed, which may change following the recent earnings report [4]. Industry Context - The Insurance - Multi line industry, to which AIG belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [5]. - James River Group, another company in the same industry, is expected to report a decline in earnings and revenues for the quarter ended December 2023 [5].