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The Single Biggest Risk at AIG

In this video, Matt Koppenheffer talks about what he sees as the single biggest risk to AIG (NYSE: AIG  ) , namely its poor quality businesses. Over the past few years, AIG has sold off businesses, rebuilt its balance sheet and streamlined its business. However, its current stable of life and property insurance businesses are less than inspiring. The property insurance business has not been underwriting profitably, and the life insurance businesses have faced pressure on their profits. If you want to invest in an insurance company, you want to see profitable underwriting, and right now, AIG looks a little shaky in that regard. 

At the end of last year, AIG was the favorite stock among hedge fund managers. Have they identified the next big multi-bagger, or are the risks facing the insurance giant still too great? In The Motley Fool's premium report on AIG, Financials Bureau Chief Matt Koppenheffer breaks down the key issues you need to know about if you want to successfully invest in this stock. Simply click here now to claim your copy, and you'll also receive a full year of key updates and expert analysis as news continues to develop.


Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 30, 2013, at 3:43 PM, foolishfollies wrote:

    Well heck Matt, if it wasn't still questionable you probably couldn't buy it for less than 60% of book value.

    I, as always, will go with the large hedgies. 145 of them that own AIG. 7 of which hold AIG as at least 20% of their entire portfolio. Source-Insidermonkey.

    It has worked out fairly well for me in the past

  • Report this Comment On April 30, 2013, at 5:18 PM, heliskiier wrote:

    Watch the earnings report and then tell us about how shaky things are. They have been tightening UW standards and getting price along with the rest of the insurance market, if not even moreso. Look out above.

  • Report this Comment On April 30, 2013, at 5:21 PM, heliskiier wrote:

    This is like the earlier Fool comment that insinuated that the Execs leaving AIG are a sign of a problem. Like I said to that article, if you were an exec at almost any insurance company and BRK made you an offer you couldn't refuse, what would you do. AIG has plenty of talent to step right in and has the UW capacity and much improved discipline to go the distance.

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