We are upgrading our recommendation on the shares of American International Group (AIG). The company is poised to grow its top line on the back of the reviving economy and equity market appreciation in the upcoming quarters.
AIG’s first quarter earnings were substantially ahead of the Zacks Consensus Estimate, primarily driven by the company’s robust results in its insurance operations and significant improvement in its investment income. AIG also benefited from a recovery in the value of its investments and benefits, as well as its claims expense control.
As part of its effort to repay the bailout money, the company continues to implement several restructuring initiatives, including the disposal of assets and increase of operating efficiencies.Zacks Investment Research
