– Recent $AIG spin-off trading 5x 2023 EPS or at 40-50% discount to peers.
– High-quality life insurance/retirement services franchise, with run-rate ROE, expected at 12-14%.
– Market leader in major lines of business.
– Less risky liability profile relative to peers.
– Experienced, tenured management team.
– Multiple levers for ROE expansion and EPS growth.
– 4% dividend yield.
– Attractive valuation at 0.6x BV ex AOCI and ~5x 2023E EPS.
– Peer median is at 7xEPS and 1.2xBV.
– In line with peers would be a $30-32/stock.
Exp. gain: +40% to $30/share by 2024.
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