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New York-based American International Group, Inc. (AIG) operates in the global insurance sector, offering a diverse range of property-casualty, life insurance, retirement solutions, and financial services. With a market cap of $50.5 billion, the company is expected to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 31.
Ahead of this event, analysts expect the insurance company to report a profit of $1.39 per share, down 20.6% from $1.75 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the last four quarterly reports. In the most recent quarter, the company reported EPS of $1.77, exceeding the consensus estimate by a 6.6% margin due to underwriting strength.
For fiscal 2024, analysts expect AIG to report EPS of $6.45, down 5% from $6.79 in fiscal 2023. However, looking forward to fiscal 2025, EPS is expected to grow 14.4% annually to $7.38.
On a YTD basis, AIG increased 12.9%, trailing behind both the S&P 500 Index's ($SPX) 16.9% rise and the S&P 500 Financials Sector SPDR's (XLF) 15.4% gain over the same period.
In February, shares of AIG rose marginally after its Q4 earnings release due to higher-than-expected investment returns and strong underwriting performance in its general insurance segment.
Moreover, the stock surged 3% following its Q1 earnings results, which exceeded expectations on May 1, driven by a 19% increase in underwriting income within its general insurance segment and a 7% rise in premiums from its life and retirement division. Plus, lower catastrophe losses and improved net investment income contributed to the positive market reaction.
Analysts' consensus rating on American International stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 17 analysts covering the stock, opinions include nine "Strong Buys," two "Moderate Buys," and six "Holds." The average analyst price target for AIG is $85.18, suggesting a potential upside of around 12% from current levels.
On the date of publication, Sohini Mondal 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.
