American International Group, Inc. (AIG) Earnings: An Early Look

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Low interest rates continue to hamper AIG, though. In particular, with the company retaining some life-insurance risk, low rates threaten future returns on premium float. That’s likely one reason the company’s valuation is so low, as fellow life insurer Metlife Inc (NYSE:MET) also fetches a low price-to-book right now. Low rates have also motivated Hartford Financial Services Group Inc (NYSE:HIG) to focus on its property and casualty lines, which may prove to be a direct attack on AIG’s future strategy.

Investors need to watch AIG’s report closely to see what CEO Bob Benmosche’s next move for the insurance giant will be. With most of the heavy lifting having been done, AIG needs to move forward with strategies to compete against rivals and grow back toward being the industry leader it was before the financial crisis.

The article AIG Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns warrants on AIG and Hartford Financial. The Motley Fool recommends AIG. The Motley Fool owns shares of and has options positions on AIG.

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