AIG vs. RGA: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AIG and RGA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AIG’s market capitalization of 47.94 billion USD is substantially larger than RGA’s 13.07 billion USD, indicating a significant difference in their market valuations.
With betas of 0.66 for AIG and 0.63 for RGA, both stocks show similar sensitivity to overall market movements.
| Symbol | AIG | RGA |
|---|---|---|
| Company Name | American International Group, Inc. | Reinsurance Group of America, Incorporated |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Insurance - Diversified | Insurance - Reinsurance |
| CEO | Peter Salvatore Zaffino | Tony Cheng |
| Price | 83.18 USD | 197.79 USD |
| Market Cap | 47.94 billion USD | 13.07 billion USD |
| Beta | 0.66 | 0.63 |
| Exchange | NYSE | NYSE |
| IPO Date | January 2, 1973 | September 12, 2008 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AIG and RGA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AIG
-4.43%
Insurance - Diversified Industry
- Max
- 19.59%
- Q3
- 17.66%
- Median
- 12.77%
- Q1
- 7.56%
- Min
- -4.43%
AIG has a negative Return on Equity of -4.43%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
RGA
7.36%
Insurance - Reinsurance Industry
- Max
- 18.30%
- Q3
- 14.16%
- Median
- 8.39%
- Q1
- 7.08%
- Min
- 5.91%
RGA’s Return on Equity of 7.36% is on par with the norm for the Insurance - Reinsurance industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
AIG
10.39%
Insurance - Diversified Industry
- Max
- 32.46%
- Q3
- 16.21%
- Median
- 9.46%
- Q1
- 2.09%
- Min
- -10.51%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Diversified industry.
RGA
0.62%
Insurance - Reinsurance Industry
- Max
- 126.30%
- Q3
- 60.66%
- Median
- 7.25%
- Q1
- 3.18%
- Min
- 0.62%
Return on Invested Capital is often not a primary measure of capital efficiency in the Insurance - Reinsurance industry.
Net Profit Margin
AIG
-7.05%
Insurance - Diversified Industry
- Max
- 26.00%
- Q3
- 19.46%
- Median
- 9.37%
- Q1
- 5.55%
- Min
- -7.05%
AIG has a negative Net Profit Margin of -7.05%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
RGA
3.77%
Insurance - Reinsurance Industry
- Max
- 21.27%
- Q3
- 12.90%
- Median
- 9.40%
- Q1
- 5.62%
- Min
- 3.77%
Falling into the lower quartile for the Insurance - Reinsurance industry, RGA’s Net Profit Margin of 3.77% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin
AIG
13.31%
Insurance - Diversified Industry
- Max
- 44.52%
- Q3
- 25.84%
- Median
- 14.16%
- Q1
- 6.78%
- Min
- -2.60%
AIG’s Operating Profit Margin of 13.31% is around the midpoint for the Insurance - Diversified industry, indicating that its efficiency in managing core business operations is typical for the sector.
RGA
5.12%
Insurance - Reinsurance Industry
- Max
- 17.83%
- Q3
- 15.41%
- Median
- 8.11%
- Q1
- 5.86%
- Min
- 4.12%
RGA’s Operating Profit Margin of 5.12% is in the lower quartile for the Insurance - Reinsurance industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | AIG | RGA |
|---|---|---|
| Return on Equity (TTM) | -4.43% | 7.36% |
| Return on Assets (TTM) | -1.19% | 0.62% |
| Return on Invested Capital (TTM) | 10.39% | 0.62% |
| Net Profit Margin (TTM) | -7.05% | 3.77% |
| Operating Profit Margin (TTM) | 13.31% | 5.12% |
| Gross Profit Margin (TTM) | 100.00% | 73.13% |
Financial Strength
Current Ratio
AIG
--
Insurance - Diversified Industry
- Max
- 4.41
- Q3
- 4.03
- Median
- 2.86
- Q1
- 2.82
- Min
- 2.82
Current Ratio data for AIG is currently unavailable.
RGA
--
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
Current Ratio data for RGA is currently unavailable.
Debt-to-Equity Ratio
AIG
0.21
Insurance - Diversified Industry
- Max
- 0.54
- Q3
- 0.39
- Median
- 0.27
- Q1
- 0.21
- Min
- 0.13
AIG’s Debt-to-Equity Ratio of 0.21 is typical for the Insurance - Diversified industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
RGA
0.50
Insurance - Reinsurance Industry
- Max
- --
- Q3
- --
- Median
- --
- Q1
- --
- Min
- --
RGA has a Debt-to-Equity Ratio of 0.50, but industry benchmarks for the Insurance - Reinsurance sector are currently unavailable for comparison.
Interest Coverage Ratio
AIG
8.29
Insurance - Diversified Industry
- Max
- 19.23
- Q3
- 17.46
- Median
- 7.97
- Q1
- 4.61
- Min
- -1.63
AIG’s Interest Coverage Ratio of 8.29 is positioned comfortably within the norm for the Insurance - Diversified industry, indicating a standard and healthy capacity to cover its interest payments.
RGA
3.41
Insurance - Reinsurance Industry
- Max
- 22.46
- Q3
- 18.27
- Median
- 5.57
- Q1
- 4.93
- Min
- 3.41
In the lower quartile for the Insurance - Reinsurance industry, RGA’s Interest Coverage Ratio of 3.41 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.
Financial Strength at a Glance
| Symbol | AIG | RGA |
|---|---|---|
| Current Ratio (TTM) | -- | -- |
| Quick Ratio (TTM) | -- | -- |
| Debt-to-Equity Ratio (TTM) | 0.21 | 0.50 |
| Debt-to-Asset Ratio (TTM) | 0.05 | 0.04 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.96 | 0.54 |
| Interest Coverage Ratio (TTM) | 8.29 | 3.41 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AIG and RGA. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AIG
1.98%
Insurance - Diversified Industry
- Max
- 8.16%
- Q3
- 5.54%
- Median
- 2.46%
- Q1
- 1.59%
- Min
- 0.00%
AIG’s Dividend Yield of 1.98% is consistent with its peers in the Insurance - Diversified industry, providing a dividend return that is standard for its sector.
RGA
1.80%
Insurance - Reinsurance Industry
- Max
- 2.38%
- Q3
- 1.52%
- Median
- 0.33%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.80%, RGA offers a more attractive income stream than most of its peers in the Insurance - Reinsurance industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AIG
-51.66%
Insurance - Diversified Industry
- Max
- 101.86%
- Q3
- 53.36%
- Median
- 21.69%
- Q1
- 5.33%
- Min
- 0.00%
AIG has a negative Dividend Payout Ratio of -51.66%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
RGA
29.26%
Insurance - Reinsurance Industry
- Max
- 40.35%
- Q3
- 23.76%
- Median
- 7.09%
- Q1
- 1.73%
- Min
- 0.00%
RGA’s Dividend Payout Ratio of 29.26% is in the upper quartile for the Insurance - Reinsurance industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AIG | RGA |
|---|---|---|
| Dividend Yield (TTM) | 1.98% | 1.80% |
| Dividend Payout Ratio (TTM) | -51.66% | 29.26% |
Valuation
Price-to-Earnings Ratio
AIG
-25.70
Insurance - Diversified Industry
- Max
- 18.52
- Q3
- 16.13
- Median
- 13.33
- Q1
- 9.73
- Min
- 2.62
AIG has a negative P/E Ratio of -25.70. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
RGA
16.46
Insurance - Reinsurance Industry
- Max
- 16.92
- Q3
- 16.06
- Median
- 12.86
- Q1
- 8.23
- Min
- 5.12
A P/E Ratio of 16.46 places RGA in the upper quartile for the Insurance - Reinsurance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Forward P/E to Growth Ratio
AIG
-1.34
Insurance - Diversified Industry
- Max
- 2.60
- Q3
- 2.07
- Median
- 1.20
- Q1
- 0.77
- Min
- 0.04
AIG has a negative Forward PEG Ratio of -1.34. This typically results from negative earnings or forecasts of declining future earnings, making the ratio not meaningful for valuation.
RGA
1.52
Insurance - Reinsurance Industry
- Max
- 1.52
- Q3
- 1.04
- Median
- 0.71
- Q1
- 0.38
- Min
- 0.20
RGA’s Forward PEG Ratio of 1.52 is exceptionally high for the Insurance - Reinsurance industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
AIG
1.76
Insurance - Diversified Industry
- Max
- 3.08
- Q3
- 2.00
- Median
- 1.15
- Q1
- 1.07
- Min
- 0.38
AIG’s P/S Ratio of 1.76 aligns with the market consensus for the Insurance - Diversified industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
RGA
0.62
Insurance - Reinsurance Industry
- Max
- 1.18
- Q3
- 1.07
- Median
- 0.91
- Q1
- 0.83
- Min
- 0.62
The P/S Ratio is often not a primary valuation tool in the Insurance - Reinsurance industry.
Price-to-Book Ratio
AIG
1.19
Insurance - Diversified Industry
- Max
- 2.12
- Q3
- 1.80
- Median
- 1.59
- Q1
- 1.29
- Min
- 0.74
AIG’s P/B Ratio of 1.19 is in the lower quartile for the Insurance - Diversified industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
RGA
1.15
Insurance - Reinsurance Industry
- Max
- 1.19
- Q3
- 1.18
- Median
- 1.08
- Q1
- 0.93
- Min
- 0.73
RGA’s P/B Ratio of 1.15 is within the conventional range for the Insurance - Reinsurance industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AIG | RGA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -25.70 | 16.46 |
| Forward PEG Ratio (TTM) | -1.34 | 1.52 |
| Price-to-Sales Ratio (P/S, TTM) | 1.76 | 0.62 |
| Price-to-Book Ratio (P/B, TTM) | 1.19 | 1.15 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 17.77 | 2.58 |
| EV-to-EBITDA (TTM) | 7.31 | 12.68 |
| EV-to-Sales (TTM) | 2.02 | 0.65 |