NEW YORK ( TheStreet) -- AIG (AIG) shares are up 47% this year, but the insurer remains "the best value and most compelling long-term opportunity in our space," writes Bernstein Research analyst Josh Stirling in a report published Monday.
Stirling argues a pricing slowdown in the property and casualty (P&C) insurance market will "make the execution of AIG's margin recovery more challenging," however, he contends "the firm's margin gap to peers is substantial, and with transformational initiatives underway to close the gap, the company should be able to drive an earnings recovery in P&C even as tailwinds from pricing wane."
In addition, more than half AIG's earnings and a third of its capital is committed to the life insurance business, "which unlike P&C, materially benefits from rising
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV