AIG
American International Group Inc (NYSE:AIG) was at the center of the 2008-2009 financial crisis, and the company would have gone down if it weren´t for the $182 billion bailout it received from the federal government. The turnaround has been long and painful since them, but the insurance powerhouse is now a much healthier and simpler business, free from all government debt and refocusing on growth and profitability
The company reported its seventh consecutive quarter of positive after-tax operating income in the last quarter, and performance was solid across the board. Both volume and pricing are showing positive trends in different segments, and insurance operating income was up by 21% from the prior year to $2.3 billion.
And the good news for American International Group Inc (NYSE:AIG) investors doesn´t end there, the company has declared a $0.40 per share annual dividend and authorized a $1 billion share repurchase program. Now that the company is not indebted with the government anymore, American International Group Inc (NYSE:AIG) is in charge of its own destiny and free to reward shareholders with growing capital distributions.
In spite of these remarkable improvements, the market is still not giving American International Group Inc (NYSE:AIG) full credit for its recovery, the stock is trading at a price to book value ratio below 0.8, while most competitors carry ratios in the area of 1.2. If American International Group Inc (NYSE:AIG) continues on its track to recovery, investors in the insurance behemoth should be handsomely rewarded by its attractive valuation.
Bottom Line
The market has experienced quite a run lately; however, it’s not about the general averages but the individual companies that make those indexes. Digging below the surface can many times lead to compelling investment opportunities, and companies like Apple Inc. (NASDAQ:AAPL), Ford Motor Company (NYSE:F) and American International Group Inc (NYSE:AIG) are still offering attractive valuations and plenty of upside potential for investors.
The article Three High-Quality Companies With Attractive Valuations originally appeared on Fool.com and is written by Andrés Cardenal.
Andrés Cardenal owns shares of Apple, Ford and AIG. The Motley Fool recommends American International Group, Apple, and Ford. The Motley Fool owns shares of American International Group, Apple, and Ford and has the following options: long January 2014 $25 calls on American International Group. Andrés is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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