How does AIG's earnings growth attract investors?

American International Group (AIG) has attracted investor attention due to its strong earnings growth and strategic shareholder returns, which are reflected in its recent financial performance and market indicators: 1. **Earnings Growth**: AIG has reported a 31% increase in earnings per share, driven by strong core earnings growth and effective capital management. This significant uptrend in earnings is a key factor in attracting investors seeking profitable investments. 2. **Strategic Shareholder Returns**: The company has returned approximately $1.8 billion to shareholders in the third quarter, including $1.5 billion in stock repurchases and $254 million in dividends. This commitment to returning value to shareholders is appealing to investors looking for companies that prioritize shareholder interests. 3. **Operational Improvements**: AIG's underwriting income has improved, with a reported $437 million despite catastrophe-related charges. This demonstrates the company's ability to manage risks and generate income from its core operations, which is a positive sign for investors. 4. **Dividend Yield**: AIG offers a dividend yield of 2.01%, which is higher than the Insurance - Multi line industry's yield of 1.6% and the S&P 500's yield of 1.54%. This competitive dividend yield can be an attractive feature for income-focused investors. 5. **Future Prospects**: Analysts have adjusted their financial outlook for AIG, raising price targets and maintaining positive ratings. This indicates confidence in AIG's future performance and potential for further price appreciation. In conclusion, AIG's earnings growth, strategic shareholder returns, operational improvements, dividend yield, and positive analyst outlook combined create an attractive investment proposition for many investors.