3 Reasons to Buy AIG


In the video below, Fool analyst Matt Koppenheffer looks at three reasons investors might consider picking up shares of AIG .

Right at the top of that list is valuation. AIG is a cheap stock, Matt says. It's trading at close to half its tangible book value. This is a valuation you don't usually see at a healthy company. AIG's health may still be a question to many investors, but the company has made great strides since 2008.

The company has made progress in repairing its balance sheet and has spun off non-core assets. Matt sees more of that on the way in 2013.

The final reason is the the cyclical market in which AIG operates. The insurance market has been soft, hurting companies' profits. But as is the case with any cycle, it will turn, allowing AIG and other insurers to turn bigger profits, Matt says.

Those are three reasons to be bullish on AIG, which brought the financial world to its knees in 2008-09 and left most investors wary about owning a stake in the company. We'll fill you in on both reasons to buy and reasons to sell AIG, and what areas AIG investors need to watch going forward. Just click here now for instant access.

The article 3 Reasons to Buy AIG originally appeared on Fool.com.

Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends American International Group. The Motley Fool owns shares of American International Group and has the following options: Long Jan 2014 $25 Calls on American International Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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