Has the Financial Industry Predicted a Bullish or Bearish Trend for American International Group's Shares?
American International Group (AIG): A Look at the Insurance Giant's Performance and Future Outlook
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American International Group, Inc. (AIG), established in New York, is a leading player in the insurance market, offering services for commercial, institutional, and individual clients across North America and internationally. With a massive market cap of $49.8 billion, AIG operates through General Insurance, Life and Retirement, and Other Operations segments.
Over the past year, AIG has struggled to keep pace with the broader market, but it significantly outperformed in 2025. AIG's stock showed a 5.8% increase over the last 52 weeks and skyrocketed 14.1% on a YTD basis, compared to the S&P 500 Index's ($SPX) 10.2% gains over the past year and a 3.9% dip in 2025.
Diving deeper, AIG has also underperformed the iShares U.S. Insurance ETF's (IAK) 18.6% growth over the last year but outshined IAK's 5.9% return in 2025.
The company's shares experienced a 3.5% uptick in trading following the release of its mixed Q1 results on May 1. AIG's net premium written remained stagnant at $4.5 billion compared to the previous year's quarter. Total revenues slightly rose 30 bps year-over-year to $6.8 billion, missing analyst expectations. AIG's adjusted net income for the quarter dropped 18.6% year-over-year to $702 million, but its adjusted EPS of $1.17 surprised analysts by exceeding their predictions by 11.4%. On a brighter note, during the quarter, the company repurchased $2.2 billion worth of shares and raised its quarterly dividends by 12.5%.
Forecasts for AIG's fiscal 2025, ending in December, anticipate a 24.2% year-over-year increase in adjusted EPS to $6.15. The company has a mixed track record of earnings surprises, with three instances of beating analyst expectations and one missed projection in the past four quarters.
AIG currently holds a "Moderate Buy" overall rating, with 18 analysts offering their insights. This consists of eighteen "Strong Buys," two "Moderate Buys," and eight "Holds."
Barclays (BCS) analyst Alex Scott recently maintained an "Overweight" rating on AIG and increased the price target to $93.
AIG's mean price target of $88.72 suggests a 6.8% premium to the current price, with the Street-high target of $96 indicating a 15.6% upside potential.
Disclaimer: On the date of publication, the author did not hold positions in any of the securities mentioned in this article. Informational content only. For more information on disclosure policies, please visit our website.
Behind the Scenes:
Analysts anticipate a solid 24.2% growth in adjusted EPS for AIG in 2025, rising from $4.95 in fiscal 2024. Earnings are projected to surge further by 25.2% year-over-year to $7.70 per share in fiscal 2026.
Price targets suggest a moderate increase in AIG's stock price by the end of 2025, ranging from 6.8% to 15.6% above current levels.
Overall, analysts view AIG as poised for meaningful earnings growth in 2025, bolstered by ongoing improvements in ROE and steady premium growth.
- Investing in the insurance giant, American International Group (AIG), could prove beneficial for those seeking exposure to the business sector, as its robust performance and promising outlook in personal-finance and broader finance realms make it an attractive option.
- With a mixed Q1 performance, AIG is overseen by analysts who maintain an overall "Moderate Buy" rating for the stock, while Barclays' Alex Scott has given an "Overweight" rating, predicting a 15.6% upside potential in its finance and investing value.
