Forecast Of The Day: AIG’s International Net Premiums Earned
What?
AIG’s (NYSE:AIG) International Net Premiums Earned from its General Insurance business declined from around $14.3 billion in 2019 to around $13.4 billion in 2020. Trefis expects the metric to recover to around $14 billion in 2021 and to about $14.1 billion in 2022.
Why?
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While the decline in 2020 was due to the Covid-19 pandemic, we expect premiums earned to recover from 2021 as Covid-19 vaccination rates improve and the global economy continues to open up. We expect longer-term growth to be driven by the company’s expanding operations in high-growth economies in Asia.
So What?
We value AIG at about $57 per share, about 5% ahead of the current market price.
See Our Complete Analysis For AIG
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| Returns | Dec 2021 MTD [1] |
2021 YTD [1] |
2017-21 Total [2] |
| AIG Return | -8% | 44% | -17% |
| S&P 500 Return | 1% | 26% | 111% |
| Trefis MS Portfolio Return | 0% | 44% | 288% |
[1] Month-to-date and year-to-date as of 12/12/2021
[2] Cumulative total returns since 2017