uploads/2018/08/crash-215512_960_720.jpg

Why American International Group Inc. Is Down 3%

By

Updated

A big miss for AIG

Shares of American International Group Inc. (NYSE: AIG) are down about 3% in early trade following the release of its fiscal 2018 second-quarter earnings results after the market closed yesterday. The insurance giant reported adjusted after-tax income per diluted share of $1.05, which represented a year-over-year decline of 31.4% and fell well short of the consensus analyst estimate of $1.21.

Looking through the rest of the report, there was really nothing to smile about, including an adjusted core return on equity of 8.2% compared with 10.5% a year ago and a 4.9% decline in its adjusted book value per common share to $57.34.

Article continues below advertisement

What should you do with AIG now?

AIG has now fallen over 10% year-to-date versus the S&P 500’s (SPY) gain of about 6%, and I really do not think this will change any time soon. That being said, I think there are much better investment opportunities in this and other industries, so I don’t think you should waste your time investing in AIG today.

Advertisement

More From Market Realist