In the following video, Fool analyst Matt Koppenheffer looks at some of the biggest risks facing insurer AIG (NYSE:AIG).
AIG doesn't face the same risks it did in 2008 and 2009, when the company was on the brink of collapse. But it still faces risks today, Matt says.
The first of those is the possibility that AIG just is not a great insurer. Investors have to believe that AIG's core businesses, property and casualty insurance and life insurance, are ready to shine again. Investors need to be wary that it might not be as good as it's billed to be, Matt says.
The second concern is brand damage. AIG made a lot of splashy headlines in the financial crisis. That could potentially drive away customers.
Investors also need to consider government regulation. In the wake of the financial crisis, companies like AIG face new regulations that could hamper profitability.
Finally, investors need to consider catastrophes. When major catastrophes happen, insurers need to pay out big claims.
See more from Matt in the following video.
Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends, owns shares of, and has options on AIG. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.