How can you buy AIG shares?
The company AIG is an American insurer. The letters AIG stand for American International Group. The company is a classic on the stock market that survived the financial crisis nicely. Are you thinking about investing in AIG? In this article, you will read everything you need to know before buying AIG shares!
What does AIG do?
AIG is a large, American insurer. This insurer provides a wide range of services. These include life insurance, casualty insurance, and various pension insurances. By far most customers of this company live in the US. AIG is also active in the UK and in Japan. The company’s headquarters are in New York City.
Do you have confidence in the future of the AIG share? Then it might be smart to buy the shares. You usually do this with an online broker. An online broker can purchase the shares on your behalf. You can choose to buy the shares directly, or you can decide to place an order. When you set up an order, you only buy the shares when a certain price is reached.
Before you buy shares, it is wise to execute a good analysis first. By performing a fundamental analysis, you can investigate whether the company can continue to do well financially in the future. It can also be smart to apply a technical analysis. You then look at recurring patterns on the price chart.
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How can you invest in AIG?
Financial stocks are often volatile. When the economy is bad, they fall first. At the same time, you can see that financial stocks can produce excellent results when the economy is doing well. As an active daytrader, you can respond to this by buying and selling shares at the right time.
A good match for actively trading in AIG, is Plus500. At Plus500 you use CFDs. CFDs are derivatives that allow you to trade in share price movements without commissions. Do you want to try the possibilities for free? Then it may be wise to open a demo at Plus500. Use the button below to open a demo directly at Plus500:72% of retail CFD accounts lose money.
What is the current AIG stock price?
Are you curious about the current share price of AIG? In the graph below you can see how the CFD price of AIG has developed. By using the buttons, you can buy or sell the CFD share directly.
Following the credit crunch, AIG has made a strong change to its strategy. Since then, the company has been limited to offering non-life insurance on the international market. Life insurance and related products are also offered on the US market. By doing so, the company can fully focus on the industry in which their strength lies. Do you think that this strategy will lead to good results in the future? Then it may be smart to buy the shares.
Mostly business customers
Founded in 1919, AIG is one of the largest insurances and financial services industry companies in the world. AIG is mainly concerned with commercial and industrial insurance. Therefore, the company focuses mainly on business applications. These business applications account for the bulk of the company’s revenue. Examples of financial services provided by the company include leasing aircraft and providing pensions and loans to companies.
AIG and the credit crisis
The credit crisis caused AIG to run into major financial problems. The problems were mainly caused by the widely sold Credit Default Swaps by AIG FP. In 2008, the company suffered significant losses and to prevent endangering the company, new capital was necessary.
In 2008, there was also the acquisition of Merril Lynch and the suspension application of investment bank Lehman Brothers. AIG’s share price collapsed. The company was rescued with an $85 billion capital injection from the U.S. government. This multibillion-dollar aid prevented the company’s equity from becoming negative. In mid-March 2009, AIG’s share capital was 80% held by the US government. In total, the government has invested EUR 181 billion in the company.
Do you think the company is more resilient to a crisis now? Then it may be smart to invest in AIG by buying the shares.
Divestment of business components
Financial problems after the credit crisis caused AIG to divest business. This way, the American government can be reimbursed.
- Sale of its Asian subsidiary AIA to Prudential in Britain failed. It was decided to bring AIA to the Hong Kong Stock Exchange. The last package of shares in AIA was sold in 2012. The sale of AIA shares generated a total of $35 billion.
- AIG will sell its aircraft leasing company International Lease Finance Corporation in 2018. The aircraft leasing company Aercap is buying the aircraft leasing company for $5 billion. The acquisition is partly paid for with shares. AIG becomes a 48% shareholder. In 2015, AIG sold 95% of its shares in AerCap. Proceeds from the share sale were $3.7 billion.
Moving from London to Luxembourg
The British have decided to leave the European Union. This is the reason for AIG to move its European office from London to Luxembourg in 2019. In addition, part of the London operations will be transferred from London to Switzerland. The company will remain active in the United Kingdom.