American International Group (AIG) AI Stock Analysis

• Market Cap: $42.28B
• Dividend Yield: 2.11%
• Average Volume (3M): 4.07M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.49
• 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: 554,003,850
• 10 Day Avg. Volume: 3,751,407
• 30 Day Avg. Volume: 4,073,396
• 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: 1.26
• Enterprise Value/Revenue: 7.46
• Enterprise Value/Gross Profit: -24.81
• Enterprise Value/Ebitda: 6.98
• 1Y Price Target: $88.69
• Price Target Upside: 16.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 6.53
• Revenue Forecast (FY): $27.28B

• Rating: 59 Neutral
• Price Target: $80.00 ▲(4.82% Upside)

AIG's overall stock score reflects a balance of strong earnings call performance and reasonable valuation against the backdrop of mixed financial performance and bearish technical indicators. The company's strategic investments and technological advancements are promising, but declining revenues and technical weakness pose risks.

Positive Factors

Operational Efficiency

Improved operational efficiency, as shown by a better expense ratio, indicates AIG's ability to manage costs effectively, enhancing profitability and competitiveness in the long term.

Strategic Investments

Strategic investments are expected to be accretive to earnings, EPS, and ROE, positioning AIG for sustainable growth and enhanced market position.

Technological Advancements

Technological advancements in AI enhance underwriting and claims processes, driving efficiency and potential growth, crucial for maintaining a competitive edge.

Negative Factors

Revenue Decline

A substantial revenue decline poses a risk to future profitability and growth, challenging AIG's ability to maintain its market position and financial health.

Challenging Rate Environment

Rate pressures in key segments can hinder revenue growth and profitability, affecting AIG's ability to compete effectively in the insurance market.

Decline in Global Personal Segment

A decline in the Global Personal segment indicates challenges in maintaining premium growth, which could impact AIG's revenue diversification and stability.

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'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	7.12B	27.27B	27.96B	29.98B	51.98B	43.84B
Gross Profit	-2.14B	9.28B	4.37B	7.26B	20.11B	43.84B
EBITDA	7.61B	7.93B	7.22B	8.24B	19.19B	-3.17B
Net Income	902.08M	-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	15.76B	2.15B	240.57B	292.76B	292.53B
Total Debt	9.09B	9.79B	22.39B	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: Negative
• Last Price: 76.32
• 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 76.32 is below the 20-day moving average (MA) of 78.98, below the 50-day MA of 79.11, and below the 200-day MA of 80.07, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 39.44 is Neutral, neither overbought nor oversold. The STOCH value of 29.70 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
ACGL	79 Outperform	$32.65B	8.20	17.81%	―	16.68%	-28.54%
HIG	74 Outperform	$35.73B	10.48	20.07%	1.66%	7.11%	22.52%
PFG	73 Outperform	$17.83B	11.82	13.74%	3.67%	12.33%	―
AEG	69 Neutral	$11.92B	8.24	14.42%	5.80%	-6.19%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AIG	59 Neutral	$42.28B	13.68	7.68%	2.11%	-23.02%	52.43%
EQH	54 Neutral	$14.64B	―	-41.33%	2.27%	4.80%	-155.12%

American International Group Corporate Events

AIG Reports Strong Q3 2025 Financial Performance

American International Group, Inc. (AIG) is a leading global insurance organization that provides a wide range of insurance solutions to businesses and individuals across more than 200 countries and jurisdictions. The company is known for its extensive global reach and diverse portfolio of insurance products.

AIG Earnings Call: Strong Results Amid Challenges

American International Group, Inc. (AIG) recently held its earnings call, revealing a generally positive sentiment despite some challenges in pricing and specific segments. The company reported strong financial results, underscored by significant strategic investments and technological advancements that are expected to drive future growth. AIG’s robust capital management and operational efficiencies further support a positive outlook for the company.

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.

The most recent analyst rating on (AIG) stock is a Hold with a $83.00 price target. To see the full list of analyst forecasts on American International Group stock, see the AIG Stock Forecast page.

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.

The most recent analyst rating on (AIG) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on American International Group stock, see the AIG Stock Forecast page.

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.

The most recent analyst rating on (AIG) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on American International Group stock, see the AIG Stock Forecast page.

AIG Reports Strong Q2 2025 Financial Performance

American International Group, Inc. (AIG) is a prominent global insurance organization providing a wide range of insurance solutions to businesses and individuals in over 200 countries. The company operates primarily in the insurance sector, offering products and services through its subsidiaries and affiliates.

AIG Earnings Call: Strong Growth Amid Challenges

American International Group, Inc. (AIG) recently held its earnings call, revealing a positive sentiment driven by strong financial growth and strategic advancements. Despite facing challenges in certain market segments, the company demonstrated robust financial performance, particularly in capital returns and Gen AI initiatives, which contributed to the overall optimistic outlook.

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.

The most recent analyst rating on (AIG) stock is a Buy with a $87.00 price target. To see the full list of analyst forecasts on American International Group stock, see the AIG Stock Forecast page.