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American International Group Inc.

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AIG's earnings of $1.36 per share surpassed the Zacks Consensus Estimate by 22.5% and also grew from $0.64 in the year-ago quarter. The company recently appointed its new CEO, who we believe will speed up turnaround activities at the company. AIG has been taking up several measures like strategic divestitures, asset sales, increase in share buybacks, dividend hikes, personnel changes, cost control, reinsurance deals, and lowering of hedge fund investments in order to deliver better earnings result by curbing the probable volatilities. Though some of these efforts have paid off to some extent a lot more reforms are required for a turnaround. The company has been underperforming the industry for last several months due to its weak commercial line business. Regulatory uncertainty and exposure to catastrophes are other headwinds. Shares of the company have underperformed its sector year to date.


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