American International Group (AIG) AI Stock Analysis

• Market Cap: $43.16B
• Dividend Yield: 2.18%
• Average Volume (3M): 4.49M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.55
• Revenue Growth: -33.87%
• EPS Growth: -5.72%
• Country: US
• Employees: 22,200
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 1.81
• Shares Outstanding: 554,003,850
• 10 Day Avg. Volume: 6,283,028
• 30 Day Avg. Volume: 4,488,806
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 10.93
• 1Y Price Target: $88.63
• Price Target Upside: 14.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 70 Outperform
• Price Target: $87.00 ▲(12.84% Upside)

AIG's overall stock score reflects a solid financial performance and positive earnings call outcomes, which are the most significant factors. The company's valuation is fair, and recent corporate events suggest strategic improvements. However, mixed technical indicators and historical volatility in financial metrics warrant a balanced view.

Positive Factors

Leadership Enhancement

John Neal's appointment as President is expected to enhance AIG's underwriting excellence and contribute to sustainable growth, leveraging his global experience.

Financial Performance

The strong financial turnaround with improved net income and credit rating upgrades indicates enhanced operational efficiency and financial stability.

Cash Flow Strength

Strong cash generation capabilities provide AIG with financial flexibility to invest in growth opportunities and manage debt effectively.

Negative Factors

Property Insurance Challenges

Declining premiums in property insurance due to competitive rates could impact revenue growth and profitability in this segment.

Global Personal Segment Decline

Decreased premiums in the Global Personal segment, impacted by reinsurance treaties, may affect AIG's market position in personal insurance.

Casualty Market Challenges

Increased costs in the U.S. Casualty market due to litigation and inflationary trends could pressure margins and affect long-term profitability.

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 primarily generates revenue through underwriting insurance policies and collecting premiums from policyholders. The General Insurance segment is a significant revenue driver, where the company earns money by providing property and casualty insurance to businesses and individuals. The Life & Retirement segment contributes by offering life insurance and retirement savings products, generating income from premiums and fees associated with these policies. Additionally, AIG invests the premiums it collects, earning investment income from various financial instruments, which further enhances its revenue. Strategic partnerships with other financial institutions and distribution channels also play a crucial role in expanding AIG's market reach and driving sales across its product lines, contributing to overall profitability.

American International Group Financial Statement Overview

Summary

AIG faces significant financial challenges with declining revenue, net losses, and increased leverage. Despite maintaining positive cash flow, the negative growth trends and financial instability pose risks. Strategic adjustments are necessary to improve profitability and reduce financial risk.

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	27.78B	27.27B	47.25B	54.77B	51.96B	43.84B
Gross Profit	18.75B	27.27B	47.25B	47.24B	43.27B	35.34B
EBITDA	5.37B	7.47B	8.07B	18.71B	17.89B	-3.17B
Net Income	3.20B	-1.40B	3.64B	10.23B	10.37B	-5.94B
Balance Sheet
Total Assets	165.97B	161.32B	539.31B	522.23B	596.11B	586.48B
Cash, Cash Equivalents and Short-Term Investments	11.93B	15.76B	2.15B	240.57B	292.76B	292.53B
Total Debt	9.26B	9.79B	22.39B	27.18B	30.16B	37.53B
Total Liabilities	124.44B	118.77B	488.00B	478.77B	527.20B	519.28B
Stockholders Equity	41.50B	42.52B	45.35B	40.97B	65.96B	66.36B
Cash Flow
Free Cash Flow	3.16B	3.27B	6.24B	4.13B	6.22B	1.04B
Operating Cash Flow	3.16B	3.27B	6.24B	4.13B	6.22B	1.04B
Investing Cash Flow	6.28B	1.67B	-7.02B	-3.63B	-3.28B	-6.20B
Financing Cash Flow	-9.13B	-5.06B	782.00M	-602.00M	-3.68B	5.06B

American International Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 77.1 is below the 20-day moving average (MA) of 78.35, below the 50-day MA of 79.04, and below the 200-day MA of 78.87, indicating a bearish trend. The MACD of -0.82 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 43.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIG.

American International Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	80 Outperform	37.07B	11.95	18.52%	1.58%	7.67%	15.99%
ACGL	78 Outperform	33.87B	9.25	16.21%	―	23.79%	-32.09%
PFG	73 Outperform	18.23B	16.48	14.17%	3.71%	-3.34%	-3.32%
AIG	70 Outperform	$43.16B	14.22	7.61%	2.18%	-33.87%	-5.72%
AEG	69 Neutral	12.53B	8.88	7.49%	5.59%	-6.19%	―
EQH	57 Neutral	15.75B	42.42	41.69%	1.96%	5.05%	-47.26%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

American International Group Corporate Events

AIG Announces Leadership Change Due to Health Issues

On August 18, 2025, American International Group, Inc. announced that Claude Wade, Executive Vice President, Chief Digital Officer and Global Head of Business Operations & Claims, will step down from his current responsibilities on December 31, 2025, due to health issues. Mr. Wade will transition to an advisory role, which may impact the company’s operations and leadership structure.

AIG Reports Strong Q2 2025 Financial Turnaround

In the second quarter of 2025, AIG reported a net income of $1.1 billion, a significant turnaround from a $4.0 billion net loss in the same quarter of the previous year. The company achieved a 56% year-over-year increase in adjusted after-tax income per diluted share, driven by higher underwriting and investment income. AIG’s General Insurance segment showed strong performance with a combined ratio of 89.3% and a 3% increase in global commercial net premiums written. The company returned $2.0 billion to shareholders and received credit rating upgrades from Moody’s and S&P Global, reflecting its strong financial position.

AIG Appoints John Neal as President

On July 16, 2025, American International Group, Inc. announced the appointment of John Neal as President, effective December 1, 2025. Neal, who previously served as CEO of Lloyd’s of London, will lead AIG’s General Insurance organization and join its Executive Leadership team. His appointment is expected to bring significant global underwriting experience and enhance AIG’s culture of underwriting excellence, contributing to the company’s sustainable growth and strengthening client relationships.

AIG Upsizes Cash Tender Offers for Debt Management

On June 6, 2025, AIG announced the pricing terms for its cash tender offers to purchase certain outstanding notes, with a total consideration capped at $300 million. By June 9, 2025, AIG reported the results and upsizing of these offers, indicating a strategic move to manage its debt obligations and potentially improve its financial flexibility.