New York-based American International Group, Inc. (AIG) offers insurance products for commercial, institutional, and individual customers. Valued at $43.7 billion by market cap, the company provides property-casualty insurance, life insurance, and retirement services.
Shares of this leading global insurance organization have underperformed the broader market over the past year. AIG has gained 2.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17.7%. In 2025, AIG’s stock rose 8.5%, compared to the SPX’s 16.3% rise on a YTD basis.
Narrowing the focus, AIG’s outperformance is apparent compared to the Invesco KBW Property & Casualty Insurance ETF (KBWP). The exchange-traded fund has gained marginally over the past year. Moreover, AIG’s single-digit gains on a YTD basis outshine the ETF’s marginal returns over the same time frame.
AIG's underperformance was driven by increased catastrophe losses, including California wildfires, as well as social inflation and tariffs that pressured margins. The company's significant investments in AI-driven transformation are also facing regulatory scrutiny, which is impacting profitability despite operational improvements.
On Aug. 6, AIG reported its Q2 results, and its shares closed down more than 3% in the following trading session. Its adjusted EPS of $1.81 beat Wall Street expectations of $1.58. The company’s general insurance net premiums written stood at $6.9 billion, down marginally year over year.
For the current fiscal year, ending in December, analysts expect AIG’s EPS to grow 30.9% to $6.48 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 23 analysts covering AIG stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” and 12 “Holds.”
This configuration is more bullish than three months ago, with one analyst suggesting a “Moderate Buy.”
On Oct. 30, BMO Capital analyst Michael Zaremski maintained a “Hold” rating on AIG and set a price target of $83, implying a potential upside of 5.1% from current levels.
The mean price target of $89.50 represents a 13.3% premium to AIG’s current price levels. The Street-high price target of $99 suggests an ambitious upside potential of 25.4%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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