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AIG in 3Q17: What We Can Expect

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Oct. 16 2017, Updated 1:06 p.m. ET

3Q17 estimates

American International Group (AIG) is expected to announce its earnings for 3Q17 on November 2, 2017. Wall Street analysts have provided a high estimate of $0.90 for its 3Q17 EPS (earnings per share) and a low estimate of -$0.95. They’ve given an average EPS estimate of -$0.69.

The lower expectations for EPS could be due to AIG’s substantial exposure to Hurricane Irma. AIG stock has underperformed the broader market, which has also contributed to lower EPS expectations.

Wall Street analysts have given AIG a high estimate of $12.1 billion and a low estimate of $11.5 billion for 3Q17 revenues. They’ve given an average revenue estimate of $11.8 billion.

Let’s look at other insurance companies (IYF) for the same quarter. MetLife (MET), Allstate (ALL), and Travelers Companies (TRV) are expected to post EPS of $0.94, $0.84, and $0.47, respectively.

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Removal of SIFI tag

The SIFI (systematically important financial institution) tag has been removed from AIG, which could be beneficial for the company in terms of cost savings. The insurance giant may now focus on expansion since it has been saved from a number of regulatory obligations. It won’t have to face a lot of regulatory hurdles on acquisitions, which could be beneficial. The company is expected to shed annual compliance costs of around $150.0 million upon the removal of the SIFI tag.

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