American International Group (AIG) AI Stock Analysis

• Market Cap: $50.34B
• Dividend Yield: 1.83%
• Average Volume (3M): 3.54M
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.57
• Revenue Growth: -44.30%
• EPS Growth: -33.09%
• Country: US
• Employees: 22,200
• Sector: Financial
• Sector Strength: 81
• Industry: Insurance - Diversified
• EPS (TTM): 1.17
• Shares Outstanding: 576,330,260
• 10 Day Avg. Volume: 3,383,477
• 30 Day Avg. Volume: 3,544,203
• PEG Ratio: 0.25
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.84
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: 2.47
• 1Y Price Target: $90.21
• Price Target Upside: 5.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 68 Neutral
• Price Target: $92.00 ▲(8.01%Upside)

AIG's overall stock score is primarily driven by its significant financial challenges, including declining revenue and net losses. However, positive technical analysis and strategic advancements, such as a robust share repurchase plan, bolster the score. A reasonable valuation and strong earnings call performance further support the stock's appeal.

Positive Factors

Expense Management

AIG's investor day presentation points to better expense ratios than consensus.

Financial Flexibility

Low leverage and excess capital provide flexibility for potential M&A deals and shareholder returns.

Growth and Innovation

Management is particularly optimistic about tech enabled growth in the specialty segment, such as Lexington Insurance.

Negative Factors

Capital Returns

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

Guidance Risk

There is greater risk at AIG due to the risk of it missing guidance.

Margin Pressure

Pricing-power within the large employer marketplace where AIG primarily operates continues to be 'soft,' possibly resulting in 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 the underwriting and sale of insurance and financial products. Its revenue streams include premiums from property and casualty insurance, which cover a variety of risks, including property damage, liability, commercial and personal insurance. In addition to this, AIG generates income from its life insurance and retirement products, which include annuities and investment products. The company also earns investment income from its portfolio of invested assets, which includes fixed income securities, equities, and alternative investments. Significant partnerships with brokers, agents, and financial institutions contribute to its distribution network and revenue generation. Furthermore, AIG's focus on risk management and claims services plays a crucial role in maintaining profitability by minimizing losses and optimizing claim outcomes.

American International Group Financial Statement Overview

Summary

AIG's financial performance is challenged by declining revenue, net losses, and increased leverage. Positive cash flow is a mitigating factor, but overall financial instability and negative growth trends are concerning.

Income Statement

The income statement shows a concerning trend with declining revenue over the years, particularly noticeable in the TTM (Trailing-Twelve-Months) period. The gross profit margin has been stable, but the company reported a net loss in both the TTM and 2024, indicating challenges in controlling costs or generating sufficient revenue. EBIT and EBITDA margins have also seen fluctuations, reflecting operational inefficiencies.

Balance Sheet

The balance sheet indicates moderate financial health with a stable equity ratio, suggesting some level of stability. However, the debt-to-equity ratio has increased, indicating rising leverage that could pose risk if not managed cautiously. Return on Equity (ROE) is negative in the TTM period due to net losses, which is a concern for shareholders.

Cash Flow

Cash flow analysis shows positive operating cash flow in the TTM period, although lower than previous years. The company has managed to maintain free cash flow despite challenges, but the free cash flow growth rate is negative, and the operating cash flow to net income ratio reflects the impact of net losses on cash generation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
27.27B	27.27B	47.25B	54.77B	51.96B	43.84B
	Gross Profit
27.27B	27.27B	47.25B	47.24B	43.27B	35.34B
	EBIT
3.63B	3.87B	3.88B	16.38B	13.35B	-5.83B
	EBITDA
7.54B	7.47B	8.07B	18.71B	17.89B	-3.17B
	Net Income Common Stockholders
-1.92B	-1.40B	3.64B	10.23B	10.37B	-5.94B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
267.17B	15.76B	2.15B	240.57B	292.76B	292.53B
	Total Assets
525.06B	161.32B	539.31B	522.23B	596.11B	586.48B
	Total Debt
35.35B	8.92B	22.39B	27.18B	30.16B	37.53B
	Net Debt
32.49B	7.62B	20.23B	25.14B	27.96B	34.71B
	Total Liabilities
457.64B	118.77B	488.00B	478.77B	527.20B	519.28B
	Stockholders Equity
65.67B	42.52B	45.35B	40.97B	65.96B	66.36B
Cash Flow		Free Cash Flow
2.70B	3.27B	6.24B	4.13B	6.22B	1.04B
	Operating Cash Flow
2.70B	3.27B	6.24B	4.13B	6.22B	1.04B
	Investing Cash Flow
4.12B	1.67B	-7.02B	-3.63B	-3.28B	-6.20B
	Financing Cash Flow
-6.60B	-5.06B	782.00M	-602.00M	-3.68B	5.06B

American International Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 85.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 85.18 is above the 20-day moving average (MA) of 83.98, above the 50-day MA of 82.89, and above the 200-day MA of 77.15, indicating a bullish trend. The MACD of 0.92 indicates Negative momentum. The RSI at 55.29 is Neutral, neither overbought nor oversold. The STOCH value of 80.42 is Negative, 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
HIG	83 Outperform	$36.74B	12.89	18.49%	1.53%	7.55%	14.16%
PFG	73 Outperform	$17.26B	16.50	9.70%	3.78%	5.84%	-10.64%
ACGL	73 Outperform	$35.80B	9.80	18.42%	―	25.29%	-23.19%
EQH	71 Outperform	$16.66B	14.90	56.67%	1.75%	12.41%	14.76%
AEG	70 Neutral	$11.25B	15.97	9.36%	4.09%	-5.03%	―
AIG	68 Neutral	$50.34B	19.51	6.13%	1.83%	-44.30%	-33.09%
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%

American International Group Corporate Events

AIG Initiates Cash Tender Offers for Notes

On June 2, 2025, American International Group, Inc. announced the initiation of cash tender offers for ten series of its outstanding notes, aiming to purchase up to $300 million in total consideration. This move is part of AIG’s strategic financial management, potentially impacting its debt structure and providing liquidity to noteholders, while also reflecting its ongoing efforts to optimize its capital allocation and strengthen its financial position.

The most recent analyst rating on (AIG) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on American International Group stock, see the AIG Stock Forecast page.

AIG Shareholders Approve Key Proposals at Annual Meeting

On May 14, 2025, AIG held its Annual Meeting of Shareholders where several key proposals were voted on. The election of directors resulted in the appointment of various individuals to the Board until the 2026 Annual Meeting. Additionally, shareholders approved the continuation of annual Say-on-Pay Votes, aligning with the Board’s recommendation, and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025.

The most recent analyst rating on (AIG) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on American International Group stock, see the AIG Stock Forecast page.

AIG Announces Redemption of 3.900% Notes Due 2026

On May 15, 2025, American International Group, Inc. announced its decision to redeem all outstanding 3.900% Notes due 2026 on June 26, 2025. The redemption will involve paying the registered holders the principal amount, accrued interest, and a ‘make-whole’ premium. As of the announcement date, $236,160,000 of these notes were outstanding. This move is part of AIG’s financial strategy, potentially impacting its debt structure and stakeholder interests.

The most recent analyst rating on (AIG) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on American International Group stock, see the AIG Stock Forecast page.

AIG Completes $1.25 Billion Notes Sale

On May 7, 2025, AIG successfully completed the sale of $1.25 billion in aggregate principal amount of notes, consisting of $625 million of 4.850% Notes due 2030 and $625 million of 5.450% Notes due 2035. This strategic financial move is expected to bolster AIG’s financial position and potentially enhance its market competitiveness, offering implications for stakeholders regarding the company’s financial strategy and future growth prospects.

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.