AIGNEUTRAL

AIG Return on Equity (ROE) Analysis

7.5%

Higher than 19% of Financial Services sector peers

Updated 3031h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

Sector Performance

19th percentile

AIG

7.5%

Sector Median

13.3%

Sector Avg

19.5%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity.

AIG's current ROE of 7.5% means it earns $0.075 for every $1 of equity, a low return compared to the Financial Services sector median of 13.9%, placing AIG in the 20th percentile among peers. There is no trend data available: the year-over-year and quarter-over-quarter changes are both N/A, and no prior values exist beyond the single 7.5% reading. The combination of a below-median ROE with no trend information suggests limited near-term insight, leaving uncertainty about whether returns are improving or worsening. This metric does not support a bullish or bearish case, and it aligns with the overall NEUTRAL verdict, as AIG's weak profitability compared to peers is tempered by the absence of directional evidence.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AIG?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AIG's Return on Equity (ROE) compare to its sector?

AIG's Return on Equity (ROE) of 7.5% compares to a Financial Services sector median of 13.3%, placing it in the 19th percentile.

Who are AIG's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (12.9%), HDB (13.8%), AFL (12.4%), ARES (12.3%), RF (11.9%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.