Debt-to-Equity Ratio

The debt-to-equity ratio measures how much a company relies on borrowed money versus shareholder capital; American International Group’s current 0.23x means it uses relatively little debt compared to equity.

This is well below the sector median of 0.43x, placing the company in the 14th percentile among its Financial Services peers – meaning only 14% of competitors have an even lower ratio. Over the past eight quarters, the ratio has been stable, with a year-over-year increase of +4.5% and no change quarter-over-quarter (+0.0%). The combination of a low ratio and a stable trend implies minimal leverage risk, reducing the chance of financial distress but also offering no near-term catalyst from deleveraging. This metric supports the overall NEUTRAL verdict because while the low debt level is a defensive strength, it does not signal an active growth or re-rating opportunity on its own.

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