American International Group, Inc. (AIG)
NYSE:AIG
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American International Group
(NYSE:AIG)
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Rating:67Neutral
Price Target:
$85.00
▲(9.78% Upside)
Action:ReiteratedDate:02/13/26
The score is driven mainly by solid underlying financial quality (strong, consistent cash generation and manageable leverage) and a bullish earnings-call setup (growth guidance, continued buybacks, and underwriting/ROE progress). This is tempered by choppy income-statement trends and uncertainty from sharp revenue and balance-sheet shifts, plus mixed technical signals with negative MACD and the stock still below its 200-day average.
Positive Factors
Underwriting Discipline & Combined Ratio
Sustained sub-90 accident-year combined ratios and rising underwriting income indicate durable underwriting discipline and improved risk selection. Over 2–6 months this supports steadier underwriting profits, higher core ROE, and reduced earnings volatility relative to peers reliant on pricing cycles.
Negative Factors
Top-line Decline & Revenue Volatility
Material revenue contraction and a multi-year negative top-line trajectory raise questions about sustainable organic premium growth. Over several quarters this can constrain operating leverage, make expense targets harder to meet, and pressure long-term earnings resilience despite margin fixes.
Read all positive and negative factors
Positive Factors
Negative Factors
Underwriting Discipline & Combined Ratio
Sustained sub-90 accident-year combined ratios and rising underwriting income indicate durable underwriting discipline and improved risk selection. Over 2–6 months this supports steadier underwriting profits, higher core ROE, and reduced earnings volatility relative to peers reliant on pricing cycles.
Read all positive factors
American International Group (AIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.55B
Dividend Yield2.02%
Average Volume (3M)4.01M
Price to Earnings (P/E)15.6
Beta (1Y)0.51
Revenue Growth-23.02%
EPS Growth52.43%
CountryUS
Employees22,200
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.96
Shares Outstanding536,559,700
10 Day Avg. Volume2,944,633
30 Day Avg. Volume4,005,004
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 Cap1.19
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit5.35
Enterprise Value/Ebitda6.40
Forecast
1Y Price Target
$87.08Price Target Upside12.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)7.82
Revenue Forecast (FY)$29.26B
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, commercia...
How the Company Makes Money
AIG generates revenue primarily through the underwriting of insurance policies and the management of investment portfolios. The company earns premiums from its General Insurance segment, which includes both commercial and personal lines, while the...
American International Group Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong execution across underwriting, investments, capital returns and strategic M&A/partnerships, with notable improvement in ROE, underwriting income, investment yield and several growth initiatives (GenAI deployment, Convex, Everest, SPVs). Headwinds remain in North America property and certain personal and financial lines where pricing and volume pressures persist, and the expense ratio is improved but still above the company's sub-30% target. On balance the positives — robust earnings, disciplined renewals with meaningful reinsurance savings, active capital returns, and clear growth initiatives — materially outweigh the manageable headwinds.Positive Updates
Strong Earnings Growth
Q4 adjusted after-tax income per diluted share of $1.96, up 51% year-over-year; full-year adjusted after-tax income per diluted share $7.09, up 43% YoY. Adjusted after-tax income for 2025 was $4.0 billion, up 24% YoY.
Negative Updates
Pressure in North America Property
North America retail property contracted (management cited an ~8% full-year contraction) as the company reduced appetite in the current market. Full-year retail property pricing was down ~10% and excess & surplus pricing down ~13%, reflecting continued competitive pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Earnings Growth
Q4 adjusted after-tax income per diluted share of $1.96, up 51% year-over-year; full-year adjusted after-tax income per diluted share $7.09, up 43% YoY. Adjusted after-tax income for 2025 was $4.0 billion, up 24% YoY.
Read all positive updates
Company Guidance
AIG guided to full‑year 2026 net premiums written growth of low‑to‑mid‑teens and reaffirmed its Investor Day targets (including an expense‑ratio goal of below 30% by 2027, with meaningful improvement expected in 2026); it committed to at least $1 billion of share repurchases in 2026 (with the majority of any proceeds from monetizing its remaining 10.1% Corbridge stake—now able to be sold after Nippon Life waived the 9.9% retention—likely deployed to additional buybacks). Management also expects near‑term accretion from announced strategic deals (Convex: ~35% equity interest plus 9.9% Onyx stake and a 7.5% whole‑account quota share in 2026 rising to 10% in 2027 and 12.5% in 2028; Everest renewal rights purchase price now expected ≈$270M with up to $70M downside and an anticipated ~10‑point combined‑ratio benefit on converted business), material reinsurance savings (property catastrophe weighted average risk‑adjusted rate decrease in excess of 15%), expanded SPV capacity (Syndicate 2479 stamp capacity $300M), and broad GenAI deployments in 2026 (underwriting and claims “AIG Assist,” an orchestration layer and digital twin) to drive premium growth, margin improvement and the company’s ability to meet or exceed its 2027 objectives.American International Group Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
63
Positive
Cash Flow
68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 26.77B | 27.27B | 27.96B | 29.98B | 51.98B |
| Gross Profit | 9.24B | 9.28B | 4.37B | 7.26B | 20.11B |
| EBITDA | 7.73B | 7.93B | 7.22B | 8.24B | 19.19B |
| Net Income | 3.10B | -1.40B | 3.64B | 10.23B | 10.37B |
Balance Sheet | |||||
| Total Assets | 161.25B | 161.32B | 539.31B | 522.23B | 596.11B |
| Cash, Cash Equivalents and Short-Term Investments | 38.41B | 79.72B | 79.65B | 240.57B | 292.76B |
| Total Debt | 9.19B | 8.92B | 10.86B | 27.18B | 30.16B |
| Total Liabilities | 120.09B | 118.77B | 488.00B | 478.77B | 527.20B |
| Stockholders Equity | 41.14B | 42.52B | 45.35B | 40.97B | 65.96B |
Cash Flow | |||||
| Free Cash Flow | 3.31B | 3.27B | 6.24B | 4.13B | 6.22B |
| Operating Cash Flow | 3.31B | 3.27B | 6.24B | 4.13B | 6.22B |
| Investing Cash Flow | 3.19B | 1.67B | -7.02B | -3.63B | -3.28B |
| Financing Cash Flow | -6.54B | -5.06B | 782.00M | -602.00M | -3.68B |
American International Group Technical Analysis
Positive
77.43
Price Trends
76.53
Positive
77.37
Positive
78.15
Negative
Market Momentum
-0.24
Negative
56.62
Neutral
94.09
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 77.43 is above the 20-day moving average (MA) of 75.40, above the 50-day MA of 76.53, and below the 200-day MA of 78.15, indicating a neutral trend. The MACD of -0.24 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 94.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $35.08B | 7.15 | 19.02% | ― | 16.68% | -28.54% | |
79 Outperform | $38.32B | 10.14 | 21.37% | 1.55% | 7.11% | 22.52% | |
73 Outperform | $20.43B | 9.49 | 10.26% | 3.44% | 12.33% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $41.55B | 15.62 | 7.50% | 2.02% | -23.02% | 52.43% | |
65 Neutral | $11.60B | 10.92 | 11.63% | 5.77% | -6.19% | ― | |
50 Neutral | $10.89B | 15.82 | -152.32% | 2.15% | 7.70% | -155.12% |
* Financial Sector Average
AIG
American International Group
77.43
-3.57
-4.41%
AEG
Aegon
7.78
2.08
36.52%
ACGL
Arch Capital Group
98.60
7.12
7.78%
HIG
Hartford Insurance
138.90
24.45
21.36%
PFG
Principal Financial
94.20
19.81
26.63%
EQH
Equitable Holdings
38.84
-9.62
-19.84%
American International Group Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
AIG reports strong Q4 2025 earnings and shareholder returns
Positive
Feb 10, 2026
American International Group, Inc. reported on February 10, 2026, that for the fourth quarter of 2025 it generated adjusted after-tax income of $1.96 per diluted share, up 51% year-over-year, with General Insurance underwriting income rising 48% t...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
American International Group Announces CEO Succession and Transition
Positive
Jan 6, 2026
On January 6, 2026, American International Group announced that Chairman and CEO Peter Zaffino will transition to Executive Chair and retire as CEO by mid-2026, after leading a multi-year transformation that restored AIG’s profitability, str...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
AIG Updates By-Laws to Align with Delaware Law
Neutral
Dec 15, 2025
On December 10, 2025, American International Group, Inc. amended and restated its By-Laws to align with changes in Delaware law and introduce various updates. These amendments include provisions for the Board to adopt rules for shareholder meeting...
Executive/Board Changes
AIG Finalizes Agreement with John Neal
Neutral
Nov 21, 2025
American International Group, Inc. (AIG) has finalized the documentation related to the mutual decision that John Neal will not be joining the company. As part of the agreement, AIG will compensate Mr. Neal with $2,700,000 for incentives he forewe...
Executive/Board Changes
AIG President Appointment Change Announced
Neutral
Nov 14, 2025
American International Group, Inc. (AIG) announced that John Neal, who was set to become President on December 1, 2025, will no longer join the company due to personal reasons. AIG’s Chairman CEO, Peter Zaffino, will continue to collaborate...
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.