Positive Outlook for AIG: Strategic Market Expansion and Robust Capital Management Justify Buy Rating

Analyst Elyse Greenspan of Wells Fargo maintained a Buy rating on American International Group (AIG – Research Report), boosting the price target to $82.00.

Elyse Greenspan has given her Buy rating due to a combination of factors influencing American International Group’s (AIG) financial outlook. One of the key reasons is the company’s strategic decision to potentially increase its market share in the North American commercial sector, despite a deceleration in pricing. This approach is balanced by an improved expense ratio target, which is expected to remain below 30%, providing a counterbalance to the potential rise in the loss ratio.
Additionally, Greenspan notes that AIG’s capital management strategy is robust, with significant capital available for potential mergers and acquisitions or shareholder returns. The company’s low leverage ratio of 17.1% offers flexibility for future growth opportunities. Furthermore, AIG’s reinsurance arrangements provide a safety net against catastrophic losses, adding a layer of financial security. These factors collectively underpin the positive outlook and justify the Buy rating.

In another report released on May 2, KBW also maintained a Buy rating on the stock with a $94.00 price target.

Based on the recent corporate insider activity of 54 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AIG in relation to earlier this year.