American International Group (AIG) AI Stock Analysis

• Market Cap: $45.81B
• Dividend Yield: 2%
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.47
• Revenue Growth: -23.02%
• EPS Growth: 52.43%
• Country: US
• Employees: 22,200
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 2.20
• Shares Outstanding: 539,576,050
• 10 Day Avg. Volume: 5,824,790
• 30 Day Avg. Volume: 4,633,004
• PEG Ratio: -18.84
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.74
• P/FCF Ratio: 14.49
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.94
• Enterprise Value/Gross Profit: 5.60
• Enterprise Value/Ebitda: 6.08
• 1Y Price Target: $87.29
• Price Target Upside: 2.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14
• EPS Forecast (FY): 7
• Revenue Forecast (FY): $27.20B

• Rating: 60 Neutral
• Price Target: $81.00 ▼(-4.59% Downside)

AIG's overall stock score reflects a balance of strong earnings performance and strategic growth initiatives against the backdrop of revenue decline and technical challenges. The positive sentiment from the earnings call and reasonable valuation provide support, while technical indicators suggest caution. The company's operational efficiency and strategic investments are key strengths, but revenue trends and market conditions warrant careful monitoring.

Positive Factors

Operational Efficiency

Improved operational efficiency through reduced expense ratios enhances profitability and competitiveness, supporting long-term growth.

Strategic Investments

Strategic investments enhance market position and are expected to boost earnings, EPS, and ROE, strengthening future financial performance.

Technological Advancements

Technological advancements in AI improve operational processes, potentially increasing efficiency and competitive edge in the insurance market.

Negative Factors

Revenue Decline

A substantial revenue decline poses a risk to future profitability and indicates potential challenges in maintaining market share and growth.

Challenging Rate Environment

Pricing pressures in key segments could impact revenue and profitability, challenging AIG's ability to maintain competitive pricing and margins.

Leadership Changes

Leadership changes can disrupt strategic continuity and may impact organizational stability and long-term strategic execution.

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 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 Life and Retirement segment provides income through premiums, fees, and investment income. AIG also benefits from investment income generated from its insurance reserves, which are invested in various financial instruments. Additionally, strategic partnerships and collaborations enhance its market reach and can provide additional revenue opportunities. The company's diversified product offerings and global presence contribute to its ability to capture a wide range of revenue streams, making it resilient in varying market conditions.

American International Group Financial Statement Overview

Summary

AIG's financial statements present a mixed picture. The income statement highlights strong margins but is overshadowed by significant revenue decline. The balance sheet shows improved leverage and profitability, while the cash flow statement indicates stable cash management despite growth challenges. Overall, AIG demonstrates operational efficiency but faces risks from declining revenues and the need for careful debt management.

Income Statement

AIG's income statement shows mixed results. The TTM data indicates a significant revenue decline of 74.37%, which is concerning. However, the company maintains a high gross profit margin of over 100% due to its revenue recognition practices. The net profit margin has improved to 12.69% in the TTM, a positive sign compared to previous losses. EBIT and EBITDA margins are strong, indicating operational efficiency, but the revenue decline poses a risk to future profitability.

Balance Sheet

AIG's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.22 in the TTM, which is a positive trend compared to previous years. The return on equity has improved to 7.51% in the TTM, indicating better profitability. However, the equity ratio is not provided, limiting a full assessment of asset financing. Overall, the balance sheet shows stability but requires careful monitoring of debt levels.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 11.27% in the TTM, which is a concern. However, the operating cash flow to net income ratio is strong at 1.88, indicating efficient cash generation relative to net income. The free cash flow to net income ratio remains stable at 1.0, suggesting consistent cash flow management. Despite the decline in growth, cash flow metrics show resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.39B	27.27B	27.96B	29.98B	51.98B	43.84B
Gross Profit	9.49B	9.28B	4.37B	7.26B	20.11B	43.84B
EBITDA	8.73B	7.93B	7.22B	8.24B	19.19B	-3.17B
Net Income	3.26B	-1.40B	3.64B	10.23B	10.37B	-5.94B
Balance Sheet
Total Assets	163.41B	161.32B	539.31B	522.23B	596.11B	586.48B
Cash, Cash Equivalents and Short-Term Investments	11.01B	37.41B	79.65B	240.57B	292.76B	292.53B
Total Debt	9.09B	8.92B	10.86B	27.18B	30.16B	37.53B
Total Liabilities	122.30B	118.77B	488.00B	478.77B	527.20B	519.28B
Stockholders Equity	41.09B	42.52B	45.35B	40.97B	65.96B	66.36B
Cash Flow
Free Cash Flow	2.80B	3.27B	6.24B	4.13B	6.22B	1.04B
Operating Cash Flow	2.80B	3.27B	6.24B	4.13B	6.22B	1.04B
Investing Cash Flow	5.91B	1.67B	-7.02B	-3.63B	-3.28B	-6.20B
Financing Cash Flow	-8.75B	-5.06B	782.00M	-602.00M	-3.68B	5.06B

American International Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 84.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 84.9 is above the 20-day moving average (MA) of 77.38, above the 50-day MA of 78.57, and above the 200-day MA of 80.44, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 75.67 is Negative, neither overbought nor oversold. The STOCH value of 84.55 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
ACGL	79 Outperform	$34.06B	8.79	17.81%	―	16.68%	-28.54%
HIG	78 Outperform	$37.70B	11.05	20.07%	1.60%	7.11%	22.52%
PFG	76 Outperform	$19.76B	13.09	13.74%	3.42%	12.33%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AEG	64 Neutral	$11.71B	8.14	14.42%	5.98%	-6.19%	―
AIG	60 Neutral	$45.81B	15.22	7.68%	2.00%	-23.02%	52.43%
EQH	40 Underperform	$13.83B	-17.43	-41.33%	2.18%	7.70%	-155.12%

American International Group Corporate Events

AIG Finalizes Agreement with John Neal

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 forewent at his former employer.

AIG President Appointment Change Announced

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 with the Board to optimize the company’s organizational structure, aiming to enhance performance for clients, partners, and stakeholders.

AIG Reports Strong Q3 2025 Financial Results

AIG reported strong financial results for the third quarter of 2025, with net income per diluted share increasing by 31% to $0.93 and adjusted after-tax income per diluted share rising by 77% to $2.20. The company announced strategic investments in Convex Group and Onex Corporation, as well as agreements to acquire renewal rights for Everest Group’s global retail commercial insurance portfolios. These moves are expected to enhance AIG’s earnings, EPS, and ROE, reflecting its robust brand and industry relationships. AIG’s General Insurance underwriting income grew by 81%, and the company returned approximately $1.5 billion of capital to shareholders during the quarter.

AIG Board Member Paola Bergamaschi Resigns

On October 1, 2025, American International Group, Inc. announced that Paola Bergamaschi will resign from its Board of Directors, effective October 15, 2025. Following her resignation, she will join the board of Talbot Underwriting Ltd., a subsidiary of AIG operating within the Lloyd’s Insurance Market, starting October 20, 2025.