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With a market cap of $48.6 billion, American International Group, Inc. (AIG) is a global insurance organization offering a broad range of property casualty insurance, life insurance, retirement solutions, and financial services. With a presence in North America and international markets, AIG provides products that help businesses and individuals protect assets, manage risks, and secure their financial future.
Companies valued at more than $10 billion are generally considered “large-cap” stocks, and American International fits this criterion perfectly. The company operates through three key segments: General Insurance, Life and Retirement, and Other Operations, serving customers through a multichannel distribution network. Committed to sustainability, AIG has invested in renewable energy projects, supporting the global transition to cleaner energy sources.
Despite a 2.2% decline from its 52-week high of $83.77 reached on Mar. 3, shares of the insurer have risen 12.2% over the past three months, outpacing the Financial Select Sector SPDR Fund’s (XLF) 3.4% decline over the same time frame.
In the longer term, AIG stock is up 12.5% on a YTD basis, outperforming XLF’s marginal decline. Shares of AIG have gained 10.2% over the past 52 weeks, compared to XLF’s 18.2% return over the same time frame.
Despite a few fluctuations, American International has been trading mostly above its 50-day and 200-day moving averages since last year.
Shares of AIG rose 1.2% following its Q4 2024 earnings release on Feb. 11 due to its adjusted EPS of $1.30 and total revenue of $6.9 billion, surpassing expectations. Net investment income surged 44.4% year-over-year to $1.3 billion, driven by alternative investments, lower expenses, and Corebridge Financial dividends, beating estimates by 50%. Strong underwriting income in the International Commercial and Global Personal segments, along with improved combined ratios.
Additionally, AIG's continued capital returns, including $1.8 billion in share repurchases and $244 million in dividends, reinforced investor confidence.
AIG has outpaced its rival, Arch Capital Group Ltd. (ACGL), which saw a 1.8% decrease on a YTD basis and a 3.6% gain over the past 52 weeks.
Despite AIG’s outperformance relative to the broader sector over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 19 analysts' coverage, and as of writing, AIG is trading below the mean price target of $84.53.
