AIGNEUTRAL

Return on Equity (ROE)

7.5%

Higher than 18% of Financial Services sector peers

Updated 1928h ago

Sector Performance

18th percentile

AIG

7.5%

Sector Median

12.9%

Sector Avg

17.5%

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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 12.9%, placing it in the 18th percentile.

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

The closest Financial Services peers by Return on Equity (ROE) include: ARES (12.3%), BLK (11.9%), RF (11.9%), HSBC (11.6%), GOLD (10.8%).

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.