The Single Biggest Risk at AIG

Updated

In this video, Matt Koppenheffer talks about what he sees as the single biggest risk to AIG , namely its poor quality businesses. Over the past few years, AIG has sold off businesses, rebuilt its balance sheet and streamlined its business. However, its current stable of life and property insurance businesses are less than inspiring. The property insurance business has not been underwriting profitably, and the life insurance businesses have faced pressure on their profits. If you want to invest in an insurance company, you want to see profitable underwriting, and right now, AIG looks a little shaky in that regard.

At the end of last year, AIG was the favorite stock among hedge fund managers. Have they identified the next big multi-bagger, or are the risks facing the insurance giant still too great? In The Motley Fool's premium report on AIG, Financials Bureau Chief Matt Koppenheffer breaks down the key issues you need to know about if you want to successfully invest in this stock. Simply click here now to claim your copy, and you'll also receive a full year of key updates and expert analysis as news continues to develop.

The article The Single Biggest Risk at AIG originally appeared on Fool.com.

Matt Koppenheffer owns shares of American International Group. 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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