American International Group (AIG) AI Stock Analysis

• Market Cap: $44.90B
• Dividend Yield: 2.02%
• Average Volume (3M): 4.14M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.55
• Revenue Growth: -33.87%
• EPS Growth: -5.72%
• Country: US
• Employees: 22,200
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Diversified
• EPS (TTM): 1.81
• Shares Outstanding: 554,003,850
• 10 Day Avg. Volume: 3,805,923
• 30 Day Avg. Volume: 4,141,811
• 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: 1.31
• Enterprise Value/Revenue: 2.12
• Enterprise Value/Gross Profit: 3.13
• Enterprise Value/Ebitda: 10.93
• 1Y Price Target: $88.82
• Price Target Upside: 8.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 75 Outperform
• Price Target: $92.00 ▲(12.57% Upside)

AIG's overall stock score of 75 reflects strong earnings performance and positive corporate events, which are the most significant factors. The company's stable financial position and fair valuation support this score. Technical indicators are neutral, suggesting balanced market sentiment. While the company faces some challenges in specific segments, its strategic initiatives and leadership changes are expected to drive future growth.

Positive Factors

Earnings

2Q25 core EPS of $1.81 is a beat compared to the estimate of $1.55 and Street consensus of $1.61.

Financial Flexibility

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

Share Repurchases

Repurchases of $1.8bn exceeded the forecast of $1.5bn.

Negative Factors

Guidance Risk

Despite the upside to the price objective, there is a belief of greater risk of missing guidance at AIG.

Industry Challenges

Multi-year social inflation headwinds are pressuring the P&C industry.

Pricing 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 (AIG) is a leading global insurance and financial services organization headquartered in New York City. The company operates through several segments, including General Insurance, Life & Retirement, and a diverse range of financial services. AIG provides a wide array of insurance products, including property and casualty insurance, life insurance, retirement solutions, and investment products, catering to both individual and institutional clients worldwide.

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: Positive
• Last Price: 81.73
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 81.73 is above the 20-day moving average (MA) of 80.84, above the 50-day MA of 81.07, and above the 200-day MA of 79.09, indicating a bullish trend. The MACD of 0.38 indicates Negative momentum. The RSI at 54.34 is Neutral, neither overbought nor oversold. The STOCH value of 37.97 is Neutral, 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	80 Outperform	$37.09B	11.96	19.55%	1.54%	7.67%	15.99%
ACGL	79 Outperform	$34.42B	9.53	17.09%	―	23.79%	-32.09%
AIG	75 Outperform	$44.90B	15.02	7.61%	2.02%	-33.87%	-5.72%
PFG	73 Outperform	$17.81B	16.10	10.16%	3.71%	-3.34%	-3.32%
EQH	71 Outperform	$15.80B	42.55	34.30%	1.89%	5.05%	-47.26%
AEG	69 Neutral	$11.82B	8.61	14.42%	5.84%	-6.19%	―
Sector *	68 Neutral	$18.05B	11.73	10.24%	3.73%	9.66%	1.70%

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.