American International Group (AIG) AI Stock Analysis

• Market Cap: $47.66B
• Dividend Yield: 1.94%
• Average Volume (3M): 6.04M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.58
• Revenue Growth: -28.56%
• EPS Growth: 1.14%
• Country: US
• Employees: 22,200
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Diversified
• EPS (TTM): 5.05
• Shares Outstanding: 583,773,130
• 10 Day Avg. Volume: 4,907,398
• 30 Day Avg. Volume: 6,042,571
• PEG Ratio: 14.19
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.49
• Price to Cash Flow (P/CF): 6.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $88.47
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

AIG's overall stock score reflects a balanced view of its financial performance, technical analysis, valuation, earnings call outcomes, and recent corporate events. The company demonstrates strong strategic initiatives and disciplined capital management, yet faces challenges in revenue consistency and expense management. The stock's valuation appears fair, with moderate momentum indicators suggesting cautious optimism. Overall, AIG is positioned for stable growth but requires careful monitoring of its operational efficiency and market conditions.

Positive Factors

Capital Position

AIG has a risk-based capital level significantly above its peer Chubb, reflecting a stronger capital position.

Cost Management

AIG's investor day presentation highlights better expense ratios than consensus expectations.

Financial Performance

AIG's EPS of $1.30 exceeded consensus expectations, driven by stronger underwriting and investment income.

Negative Factors

Capital Returns

The forecast for AIG's stock repurchase levels has been adjusted downward, indicating a reduction in capital returns.

Earnings Forecast

Analyst estimates for AIG's earnings per share (EPS) have been reduced due to fewer share repurchases than previously anticipated.

Market Conditions

Pricing-power within the large employer marketplace where AIG operates continues to be 'soft,' potentially leading to margin pressure.

American International Group Business Overview & Revenue Model

Company Description

American International Group, Inc. offers insurance products for commercial, institutional, and individual customers in North America and internationally. The company's General Insurance segment provides general liability, environmental, commercial automobile liability, workers' compensation, casualty, and crisis management insurance products; commercial, industrial, and energy-related property insurance; and aerospace, political risk, trade credit, portfolio solutions, crop, and marine insurance. It also provides professional liability insurance products for a range of businesses and risks, including directors and officers, mergers and acquisitions, fidelity, employment practices, fiduciary liability, cyber risk, kidnap and ransom, and errors and omissions insurance. In addition, this segment offers personal auto and property insurance, such as auto, homeowners, umbrella, yacht, fine art, and collections; voluntary and sponsor-paid personal accident; supplemental health products; extended warranty insurance products; and travel insurance products. Its Life and Retirement segment offers variable annuities, index and fixed annuities, and retail mutual funds; and financial planning and advisory services; record-keeping, plan administrative, and compliance services; and term life and universal life insurance. It also provides stable value wrap products, and structured settlement and pension risk transfer annuities; and corporate- and bank-owned life insurance and guaranteed investment contracts. This segment sells its products through independent marketing organizations, independent insurance agents, financial advisors, direct marketing, banks, and broker-dealers. The company was founded in 1919 and is headquartered in New York, New York.

How the Company Makes Money

AIG makes money primarily through underwriting insurance policies and investing the premiums collected from policyholders. The company offers a diverse portfolio of insurance products, including commercial and personal insurance, life insurance, and retirement products. Key revenue streams include premiums from its general insurance segment, which covers property, casualty, and specialty insurance, as well as income from its life and retirement segment, offering products like annuities, life insurance, and pension risk transfer. Additionally, AIG generates investment income by investing reserves from collected premiums in bonds, equities, and other financial instruments. Strategic partnerships and reinsurance agreements also play a role in managing risk and enhancing revenue potential.

American International Group Financial Statement Overview

Summary

AIG's financial performance reflects a mixed picture, characterized by robust cost management and a strong equity position but challenged by declining revenues and inconsistent free cash flow. The company's ability to manage leverage is commendable, yet the recent downturn in profitability and cash flow growth warrants caution. Future stability hinges on reversing revenue decline and enhancing cash flow generation.

Income Statement

AIG exhibits fluctuating revenue trends with a notable decline in recent years. Despite this, the company maintains a strong gross profit margin of 100% due to total revenue equating to gross profit, indicating effective cost management. However, the recent EBIT and net profit margins have decreased, indicating pressure on operational efficiency and profitability.

Balance Sheet

AIG's balance sheet shows a strong equity base with a debt-to-equity ratio of 0.21, signaling leverage control. The equity ratio stands at 26.3%, reflecting solid asset financing through equity. However, fluctuating equity levels and a decrease in total assets raise concerns about growth sustainability.

Cash Flow

AIG's cash flow analysis reveals variability in free cash flow, with a significant decline in recent periods. The operating cash flow to net income ratio is healthy at 1.25, indicating good conversion of accounting profits to cash. However, the negative free cash flow growth rate poses risks to liquidity and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
27.27B	47.25B	54.77B	51.96B	43.84B
	Gross Profit
27.27B	47.25B	54.77B	51.96B	43.84B
	EBIT
3.87B	3.86B	14.30B	13.35B	-7.29B
	EBITDA
7.47B	8.07B	18.71B	17.89B	-3.17B
	Net Income Common Stockholders
-1.40B	3.64B	10.23B	10.37B	-5.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.76B	2.15B	240.57B	292.76B	292.53B
	Total Assets
161.32B	539.31B	526.63B	596.11B	586.48B
	Total Debt
8.76B	22.39B	27.18B	30.16B	37.53B
	Net Debt
7.46B	20.23B	25.14B	27.96B	34.71B
	Total Liabilities
118.77B	488.00B	484.40B	30.16B	37.53B
	Stockholders Equity
42.52B	45.35B	40.00B	65.96B	66.36B
Cash Flow		Free Cash Flow
3.27B	6.24B	4.21B	5.53B	2.85B
	Operating Cash Flow
3.27B	6.24B	4.21B	6.28B	1.04B
	Investing Cash Flow
1.67B	-7.02B	-3.63B	-3.28B	-6.20B
	Financing Cash Flow
-5.06B	782.00M	-676.00M	-3.73B	5.06B

American International Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 81.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIG, the sentiment is Positive. The current price of 81.22 is below the 20-day moving average (MA) of 82.18, above the 50-day MA of 81.17, and above the 200-day MA of 75.71, indicating a neutral trend. The MACD of -0.10 indicates Positive momentum. The RSI at 48.69 is Neutral, neither overbought nor oversold. The STOCH value of 59.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIG.

American International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	82 Outperform	$34.60B	8.23	22.02%	―	26.24%	-3.87%
HIG	81 Outperform	$34.03B	11.52	19.58%	1.66%	8.19%	29.77%
AIG	68 Neutral	$47.66B	16.12	7.10%	1.94%	-28.56%	1.14%
PFG	67 Neutral	$16.87B	11.23	14.28%	3.93%	18.02%	171.70%
EQH	64 Neutral	$15.36B	13.25	61.74%	1.96%	16.81%	14.00%
AEG	63 Neutral	$10.00B	14.19	9.36%	4.66%	-5.03%	―
Sector *	63 Neutral	$12.33B	9.59	8.02%	79.26%	12.87%	-4.61%

American International Group Corporate Events

AIG Announces $7.5 Billion Share Repurchase Plan

On March 31, 2025, American International Group hosted its 2025 Investor Day, where it announced a new share repurchase authorization of up to $7.5 billion, effective April 1, 2025. This move reflects AIG’s strategic focus on enhancing shareholder value and signifies its confidence in its financial position and future growth prospects.

AIG Appoints Juan Perez to Board of Directors

On February 19, 2025, American International Group, Inc. (AIG) appointed Juan Perez, a prominent technology executive with extensive experience in artificial intelligence and digital transformation, to its Board of Directors. This strategic move aims to enhance AIG’s data and digital strategy, aligning with its focus on delivering exceptional value to clients and stakeholders and positioning the company for long-term success.