American International Group (AIG)
NYSE:AIG
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American International Group
(NYSE:AIG)
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Rating:65Neutral
Price Target:
$81.00
▲(2.95% Upside)
Action:ReiteratedDate:04/28/26
The score is driven primarily by acceptable underlying financial quality (notably consistent cash generation and manageable leverage) and a supportive earnings-call outlook with clear capital return commitments. These positives are tempered by weak technical positioning (trading below key moving averages) and ongoing financial statement uncertainty tied to volatile profitability, declining revenues, and significant balance-sheet shifts.
Positive Factors
Consistent cash generation
AIG’s operating and free cash flow have been consistently positive with free cash flow growth improving to +18% in 2025. Durable cash generation supports underwriting flexibility, reinvestment, dividends and buybacks, reducing reliance on external financing and enabling multi-year capital return programs.
Negative Factors
Top-line weakness and volatility
AIG’s revenue trend shows durable weakness with multi-year declines and extreme year-on-year drops, raising questions about the sustainability of 2025 margin improvements. Persistent top-line contraction limits operating leverage, increases reliance on margin gains and transactions for earnings growth, and heightens execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
AIG’s operating and free cash flow have been consistently positive with free cash flow growth improving to +18% in 2025. Durable cash generation supports underwriting flexibility, reinvestment, dividends and buybacks, reducing reliance on external financing and enabling multi-year capital return programs.
Read all positive factors
American International Group (AIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.32B
Dividend Yield2.02%
Average Volume (3M)3.73M
Price to Earnings (P/E)15.6
Beta (1Y)0.51
Revenue Growth-19.92%
EPS Growth7.41%
CountryUS
Employees22,200
SectorFinancial
Sector Strength70
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)1.96
Shares Outstanding536,559,700
10 Day Avg. Volume3,096,272
30 Day Avg. Volume3,731,768
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 Cap1.18
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda6.17
Forecast
1Y Price Target
$86.71Price Target Upside10.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)7.83
Revenue Forecast (FY)$29.25B
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 primarily makes money through (1) insurance underwriting and related fees and (2) investment income on the assets it holds to support insurance and retirement obligations.
1) Insurance underwriting (premiums vs. claims and expenses)
- Premium...
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
78.68
Price Trends
77.04
Positive
77.48
Positive
77.94
Positive
Market Momentum
0.44
Negative
60.15
Neutral
79.15
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 78.68 is above the 20-day moving average (MA) of 76.01, above the 50-day MA of 77.04, and above the 200-day MA of 77.94, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 79.15 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $34.27B | 7.15 | 19.02% | ― | 15.21% | 3.38% | |
78 Outperform | $36.86B | 10.99 | 22.01% | 1.55% | 6.90% | 41.67% | |
78 Outperform | $21.52B | 11.69 | 13.53% | 3.44% | -23.49% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $40.32B | 15.62 | 7.50% | 2.02% | -19.92% | 7.41% | |
65 Neutral | $12.03B | 10.92 | 11.63% | 5.77% | 33.06% | 50.47% | |
50 Neutral | $11.57B | 15.82 | -152.32% | 2.15% | -16.14% | -224.34% |
* Financial Sector Average
AIG
American International Group
74.13
-6.07
-7.57%
AEG
Aegon
8.03
1.84
29.66%
ACGL
Arch Capital Group
96.35
3.96
4.29%
HIG
Hartford Insurance
136.71
16.50
13.73%
PFG
Principal Financial
99.74
27.93
38.89%
EQH
Equitable Holdings
41.55
-8.29
-16.64%
American International Group Corporate Events
Business Operations and StrategyExecutive/Board Changes
American International Group Announces CEO Transition to Andersen
Positive
Apr 27, 2026
On April 27, 2026, American International Group’s board finalized a planned leadership transition under which Eric Andersen will become president, chief executive officer and a board member effective June 1, 2026, while current chairman and ...
Executive/Board ChangesShareholder Meetings
AIG Announces Planned Board Transition as Director Steps Down
Neutral
Mar 16, 2026
American International Group, Inc. announced that director James Dunne III has decided not to stand for re-election to the Board at the insurer’s 2026 Annual Meeting of Shareholders, scheduled for May 13, 2026. The company stated that Dunne&...
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...
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.