Ares Management vs AIG

This page compares Ares Management and AIG, examining their business models, financial performance, and market context to help readers understand how the two organisations operate. The analysis stays neutral and accessible, highlighting governance, strategy, and competitive positioning across relevant markets. Educational content, not financial advice.

About The Companies

Ares Management (ARES)

Ares Management Corporation (ARES) is a global alternative asset manager that invests across credit, private equity and real estate. It earns recurring management fees and performance-related fees from assets under management (AUM), and its operating model blends fee-related earnings with capital appreciation from co-investments. With a market capitalisation of about $49.04 billion, Ares has grown through fundraising, acquisitions and product diversification into listed investment vehicles and private funds. Key considerations for investors include sensitivity to credit and economic cycles, the illiquid nature of many alternative investments, and reliance on continued fundraising and fee compression dynamics. Financial results are driven by AUM trends, realised investment performance and capital markets activity. This summary is educational and not personal investment advice; values can rise or fall and past performance is not a guide to the future. Consider your financial situation and consult a qualified adviser before investing.

AIG (AIG)

American International Group (AIG) is a large, global insurer offering property & casualty coverages along with specialty and legacy life exposures. With a market capitalisation of about $43.42 billion, AIG operates across commercial and consumer lines and manages investment assets that support underwriting results. Investors should note AIG has undergone significant restructuring since the financial crisis and focuses on capital strength, underwriting discipline and returning capital to shareholders. Key drivers include underwriting performance, catastrophe losses, interest rates and investment returns, as well as regulatory and reinsurance dynamics. As with any insurer, balance-sheet metrics and reserve adequacy are important to monitor. This summary is educational only — not personal financial advice. Insurance stocks can be volatile and past performance is no guarantee of future returns; investors should assess suitability in light of their objectives, risk tolerance and time horizon.

Comparison Snapshot

Key Financial Metrics

ARES

Metric

AIG

$57.81B

Market Cap

$44.70B

5.02%

Potential Profit

4.38%

Buy

Analyst Rating

Buy

Why It's Moving

Ares Management Tops Fundraising Records Amid Strong Q3 Results and Strategic Real Estate Expansion

Q3 earnings revealed a 28% year-over-year increase in assets under management (AUM), fee-paying AUM, and management fees, driven by strong fundraising and investing momentum.
CEO Michael Arougheti announced expectations to significantly surpass the prior annual fundraising record of $93 billion, highlighting broad investor interest across multiple investment strategies.
On December 1, Ares introduced Marq to integrate its global logistics platform within its real estate business, enhancing operational efficiency and market positioning in a key growth sector.

Sentiment:

🐃Bullish

AIG Shares React to Mixed Q3 Results Amid Ongoing Buyback and Strategic Focus

Q3 adjusted EPS topped estimates at $2.20 versus $1.57, driven by efficient expense control despite weaker GAAP earnings and revenue miss at $6.35 billion, indicating a mixed financial snapshot.
AIG repurchased over 15 million shares for $1.23 billion, reinforcing its capital return strategy and potentially supporting near-term share price stability.
The firm’s investment narrative hinges on portfolio optimization and technology investments to sustain margin resilience, though reduced diversification post-Corebridge divestiture raises underwriting volatility concerns.

Sentiment:

⚖️Neutral

Ares Management Tops Fundraising Records Amid Strong Q3 Results and Strategic Real Estate Expansion

Q3 earnings revealed a 28% year-over-year increase in assets under management (AUM), fee-paying AUM, and management fees, driven by strong fundraising and investing momentum.
CEO Michael Arougheti announced expectations to significantly surpass the prior annual fundraising record of $93 billion, highlighting broad investor interest across multiple investment strategies.
On December 1, Ares introduced Marq to integrate its global logistics platform within its real estate business, enhancing operational efficiency and market positioning in a key growth sector.

Sentiment:

🐃Bullish

AIG Shares React to Mixed Q3 Results Amid Ongoing Buyback and Strategic Focus

Q3 adjusted EPS topped estimates at $2.20 versus $1.57, driven by efficient expense control despite weaker GAAP earnings and revenue miss at $6.35 billion, indicating a mixed financial snapshot.
AIG repurchased over 15 million shares for $1.23 billion, reinforcing its capital return strategy and potentially supporting near-term share price stability.
The firm’s investment narrative hinges on portfolio optimization and technology investments to sustain margin resilience, though reduced diversification post-Corebridge divestiture raises underwriting volatility concerns.

Sentiment:

⚖️Neutral

Which Baskets Do They Appear In?

The Dealmakers: M&A Boom

A carefully selected group of financial institutions driving today's surge in mergers and acquisitions. These companies are the architects behind billion-dollar deals, earning significant fees as corporate dealmaking accelerates.

Published: June 30, 2025

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Which Baskets Do They Appear In?

The Dealmakers: M&A Boom

Published: June 30, 2025

Explore Basket

Investment Analysis

Ares Management

ARES

Pros

Ares Management benefits from a diversified global platform with strong capabilities in credit, private equity, real estate, and infrastructure, providing resilience across market cycles.
The company demonstrates consistent revenue growth and profitability, supported by a large and expanding assets under management base, which recently approached $400 billion.
Ares Management offers an attractive recurring management fee stream, reducing earnings volatility and supporting shareholder returns through a meaningful dividend yield.

Considerations

Elevated price-to-earnings ratio reflects a rich valuation, potentially limiting upside and increasing sensitivity to earnings disappointment or market shifts.
Dependence on fundraising and capital markets activity introduces cyclical risks, with performance closely tied to investor appetite for alternative assets.
Ares Management’s credit-heavy portfolio may face headwinds in rising rate environments or during periods of increased loan defaults.

AIG

Pros

AIG maintains a leading position in global insurance and reinsurance markets, benefiting from scale and a well-established client base across commercial and personal lines.
The company has made significant progress in simplifying its business and improving underwriting discipline, contributing to a stronger, more stable earnings profile.
AIG’s balance sheet reflects robust capital adequacy and liquidity, supporting resilience during periods of stress and enabling investment in growth initiatives.

Considerations

AIG remains exposed to significant catastrophic risk in its property and casualty segments, which can lead to volatility in underwriting results during major disasters.
The insurance industry’s competitive landscape and pricing pressures may limit AIG’s ability to sustain premium growth without further operational improvements.
Regulatory scrutiny remains high given the systemic importance of large insurers, potentially increasing compliance costs or constraints on business activities.

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Ares Management vs AIG

About The Companies

Comparison Snapshot

Why It's Moving

Ares Management Tops Fundraising Records Amid Strong Q3 Results and Strategic Real Estate Expansion

AIG Shares React to Mixed Q3 Results Amid Ongoing Buyback and Strategic Focus

Ares Management Tops Fundraising Records Amid Strong Q3 Results and Strategic Real Estate Expansion

AIG Shares React to Mixed Q3 Results Amid Ongoing Buyback and Strategic Focus

Which Baskets Do They Appear In?

The Dealmakers: M&A Boom

Which Baskets Do They Appear In?

The Dealmakers: M&A Boom

Investment Analysis

Ares Management

Pros

Considerations

AIG

Pros

Considerations

Why invest with Nemo?

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

What are the core business models of Ares Management and AIG as described here?

How do market cycles impact a credit-focused asset manager compared with an insurer?

What does diversification mean in the context of Ares Management’s business?

Why might valuation and price-earnings ratios be a concern when comparing these stocks?

How does revenue stability differ between Ares Management and AIG?

What role do balance sheet features play in evaluating these stocks?

What external factors should readers consider when comparing these two companies?

How could regulatory environments affect AIG more than Ares?

What should a beginner look for when interpreting management commentary about these two stocks?

What is the educational takeaway from comparing these two organisations?

About The Companies

Comparison Snapshot