In the video below, Fool analyst Matt Koppenheffer looks at three reasons investors might consider picking up shares of AIG (AIG 1.27%).
Right at the top of that list is valuation. AIG is a cheap stock, Matt says. It's trading at close to half its tangible book value. This is a valuation you don't usually see at a healthy company. AIG's health may still be a question to many investors, but the company has made great strides since 2008.
The company has made progress in repairing its balance sheet and has spun off non-core assets. Matt sees more of that on the way in 2013.
The final reason is the the cyclical market in which AIG operates. The insurance market has been soft, hurting companies' profits. But as is the case with any cycle, it will turn, allowing AIG and other insurers to turn bigger profits, Matt says.
