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American International Group Inc (AIG): Today's Featured Insurance Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

American International Group (AIG) pushed the Insurance industry lower today making it today's featured Insurance laggard. The industry as a whole closed the day down 0.2%. By the end of trading, American International Group fell 41 cents (-1.2%) to $34.85 on heavy volume. Throughout the day, 61.9 million shares of American International Group exchanged hands as compared to its average daily volume of 20.3 million shares. The stock ranged in price between $34.51-$35.82 after having opened the day at $35.58 as compared to the previous trading day's close of $35.26. Other companies within the Insurance industry that declined today were: CNinsure (CISG), down 4.9%, Donegal Group (DGICA), down 4.3%, Citizens (CIA), down 3.4%, and Infinity Property and Casualty Corporation (IPCC), down 3.3%.

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American International Group, Inc. engages in the provision of insurance products and services for the commercial, institutional, and individual customers in the United States and internationally. The company operates in three segments: Chartis, SunAmerica Financial Group, and Aircraft Leasing. American International Group has a market cap of $49.25 billion and is part of the financial sector. The company has a P/E ratio of 2.2, below the S&P 500 P/E ratio of 17.7. Shares are up 43.8% year to date as of the close of trading on Tuesday. Currently there are nine analysts that rate American International Group a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates American International Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and feeble growth in the company's earnings per share.

On the positive front, MGIC Investment Corporation (MTG), up 7.7%, United Insurance Holdings (UIHC), up 4.1%, Universal Insurance Holdings (UVE), up 4.1%, and Tower Group (TWGP), up 3.1%, were all gainers within the insurance industry with Berkshire Hathaway (BRK.A) being today's featured insurance industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the insurance industry could consider KBW Insurance ETF (KIE) while those bearish on the insurance industry could consider Proshares Short Financials (SEF).

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