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American International Group
(NYSE:AIG)
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Rating:65Neutral
Price Target:
$85.00
▲(7.51% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by steady balance-sheet/cash-flow footing but inconsistent profitability (margin compression and multi-year volatility). The latest earnings call was supportive (strong underwriting results, reiterated targets, and significant capital returns), while technicals are broadly neutral. Valuation is a modest positive given a mid-teens P/E and a ~2.35% dividend yield.
Positive Factors
Balance sheet strength & cash generation
Low leverage and a sizable equity base, combined with positive trailing‑12‑month operating and free cash flow, provide durable financial flexibility. This supports reserve adequacy, underwriting capacity, capital returns and funding for strategic initiatives through insurance cycles without excessive refinancing risk.
Negative Factors
Margin and earnings volatility
Significant compression in margins and swings in profitability indicate earnings are not yet consistently durable. Volatile revenue and margin trends reduce predictability of underwriting and ROE recovery, making multi‑period planning harder and increasing reliance on cyclical tailwinds or sustained underwriting improvement to restore returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength & cash generation
Low leverage and a sizable equity base, combined with positive trailing‑12‑month operating and free cash flow, provide durable financial flexibility. This supports reserve adequacy, underwriting capacity, capital returns and funding for strategic initiatives through insurance cycles without excessive refinancing risk.
Read all positive factors
American International Group Key Performance Indicators (KPIs)
Any
Revenue by Type
Data provided by:
The Fly
The FlyAmerican International Group (AIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.76B
Dividend Yield2.41%
Average Volume (3M)3.99M
Price to Earnings (P/E)13.9
Beta (1Y)0.43
Revenue Growth-4.19%
EPS Growth1.09%
CountryUS
Employees22,100
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)5.51
Shares Outstanding522,893,200
10 Day Avg. Volume3,569,868
30 Day Avg. Volume3,986,705
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.18
Price to Sales (P/S)1.81
P/FCF Ratio14.59
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$88.08Price Target Upside11.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)8.04
Revenue Forecast (FY)$29.00B
American International Group Business Overview & Revenue Model
Company Description
American International Group, Inc. (AIG) is a global insurance provider, delivering a broad spectrum of insurance solutions to commercial, institutional, and individual clients across North America and worldwide. Its General Insurance division enc...
How the Company Makes Money
AIG makes money primarily by underwriting insurance and investing the premiums it collects. (1) Underwriting income: For its general insurance operations, AIG charges premiums to assume specified risks. Profitability depends on pricing/terms, risk...
American International Group Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call highlighted strong core underwriting results, improved combined ratios, double-digit segment and first-half premium growth, favorable reserve development, robust capital returns and progress on strategic priorities including AI and expense discipline. Offsetting items include continued property pricing pressure (notably in North America and Lexington), select reserve strengthening in excess casualty, catastrophe and geopolitical losses, weaker alternative investment returns, and higher acquisition ratios tied to business mix. Overall, results point to a company executing effectively across underwriting, capital management and technology while navigating line-specific competitive pressures.Positive Updates
Earnings and EPS Growth
Adjusted after-tax income was $1.1 billion and adjusted after-tax income per diluted share was $2, a 10% increase year-over-year, reflecting strong quarterly profitability.
Negative Updates
North America Property Rate Pressure and Lexington Contraction
Ongoing competitive pricing pressure in North American property (especially E&S) led to intentional contraction of the Lexington property portfolio; premium retention in Lexington property fell by a meaningful 9 percentage points in Q2 and the pricing environment reduced overall North America growth by over 3 percentage points.
Read all updates
Q2-2026 Updates
Positive
Negative
Earnings and EPS Growth
Adjusted after-tax income was $1.1 billion and adjusted after-tax income per diluted share was $2, a 10% increase year-over-year, reflecting strong quarterly profitability.
Read all positive updates
Company Guidance
Management reiterated it is on track to deliver the 2025 Investor Day commitments — notably to push the General Insurance expense ratio below 30% for full‑year 2027 — and to grow earnings, premiums, invested assets and tangible book value through disciplined underwriting, capital deployment and AI/expense initiatives. Key metrics cited to support that guidance included Q2 adjusted after‑tax income per diluted share of $2 (+10% YoY) and adjusted after‑tax income of $1.1B, core operating ROE of 11.1% (Q2) / 11.6% (H1), Q2 General Insurance underwriting income of $686M, accident‑year combined ratio as adjusted 88.1% (calendar 89.0%), Q2 net premiums earned $6.2B (+5% YoY) and net premiums written growth of 9% in Q2 (13% H1; +11% ex‑North America property), while returning $904M of capital in Q2 ($641M buybacks, $263M dividends), holding $9B of debt with total debt to adjusted capital of 17.6%, book value/share $77.39 and adjusted tangible book $72.18 — all of which management said underpin confidence that premium growth and capital management will drive the targets over 2026–2027.American International Group Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
68
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.69B | 26.77B | 27.27B | 27.96B | 29.98B | 51.98B |
| Gross Profit | 10.16B | 9.24B | 9.28B | 4.37B | 7.26B | 20.11B |
| EBITDA | 7.52B | 7.73B | 7.93B | 7.22B | 8.24B | 19.19B |
| Net Income | 2.96B | 3.10B | -1.40B | 3.64B | 10.23B | 10.37B |
Balance Sheet | ||||||
| Total Assets | 163.46B | 161.25B | 161.32B | 539.31B | 522.23B | 596.11B |
| Cash, Cash Equivalents and Short-Term Investments | 83.73B | 38.41B | 79.72B | 79.65B | 240.57B | 292.76B |
| Total Debt | 9.13B | 9.19B | 8.92B | 10.86B | 27.18B | 30.16B |
| Total Liabilities | 122.84B | 120.09B | 118.77B | 488.00B | 478.77B | 527.20B |
| Stockholders Equity | 40.61B | 41.14B | 42.52B | 45.35B | 40.97B | 65.96B |
Cash Flow | ||||||
| Free Cash Flow | 3.85B | 3.31B | 3.27B | 6.24B | 4.13B | 6.22B |
| Operating Cash Flow | 3.85B | 3.31B | 3.27B | 6.24B | 4.13B | 6.22B |
| Investing Cash Flow | -44.00M | 3.19B | 1.67B | -7.02B | -3.63B | -3.28B |
| Financing Cash Flow | -4.05B | -6.54B | -5.06B | 782.00M | -602.00M | -3.68B |
American International Group Technical Analysis
Negative
79.06
Price Trends
77.43
Negative
76.54
Positive
76.79
Negative
Market Momentum
-0.32
Positive
42.83
Neutral
7.03
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIG, the sentiment is Negative. The current price of 79.06 is above the 20-day moving average (MA) of 78.69, above the 50-day MA of 77.43, and above the 200-day MA of 76.79, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 42.83 is Neutral, neither overbought nor oversold. The STOCH value of 7.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIG.
American International Group Risk Analysis
American International Group disclosed 36 risk factors in its most recent earnings report. American International Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American International Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $33.45B | 7.62 | 19.52% | ― | -0.21% | 31.57% | |
79 Outperform | $37.33B | 8.84 | 22.99% | 1.65% | 5.95% | 39.99% | |
77 Outperform | $24.61B | 16.19 | 13.03% | 2.92% | 3.72% | 41.16% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $39.76B | 13.91 | 7.27% | 2.34% | -4.19% | 1.09% | |
63 Neutral | $14.42B | -16.24 | 624.66% | 2.31% | -17.70% | -356.46% | |
61 Neutral | $14.08B | 13.27 | 11.63% | 5.08% | 33.06% | 50.47% |
* Financial Sector Average
AIG
American International Group
76.64
-1.50
-1.92%
AEG
Aegon
9.45
2.31
32.33%
ACGL
Arch Capital Group
98.71
7.99
8.81%
HIG
Hartford Insurance
138.02
9.70
7.56%
PFG
Principal Financial
113.98
39.09
52.20%
EQH
Equitable Holdings
53.09
0.60
1.14%
American International Group Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
AIG Delivers Strong Q2 Results and Capital Returns
Positive
Aug 6, 2026
American International Group reported strong financial results for the second quarter ended June 30, 2026, highlighted by 9% year‑over‑year growth in General Insurance net premiums written to $7.5 billion and underwriting income rising...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
AIG Adds Veteran Financial Executive to Board of Directors
Positive
May 14, 2026
On May 13, 2026, AIG held its Annual Meeting of Shareholders, where investors re-elected the full slate of director nominees to serve until the 2027 meeting, including Chairman and CEO Peter Zaffino. Shareholders also approved, on an advisory basi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.