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New York-based American International Group, Inc. (AIG) offers insurance products for commercial, institutional, and individual customers in North America and internationally. With a market cap of $45.9 billion, AIG operates through General Insurance, Life and Retirement, and Other Operations segments.
The insurance sector giant has significantly underperformed the broader market over the past year. AIG stock gained nearly 5% over the past 52 weeks and a marginal 41 basis points on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 20.9% surge over the past year and 1.9% gains in 2025.
Narrowing the focus, AIG has also underperformed the iShares U.S. Insurance ETF’s (IAK) 21.1% gains over the past year and 1.8% returns on a YTD basis.
AIG stock prices dipped 1.2% in the trading session after the release of its disappointing Q3 results on Nov. 4. The company observed a significant drop in premiums collection, which led to a 7.1% year-over-year decline in total revenues to nearly $6.8 billion. Furthermore, the company struggled to manage its expenses, leading to a substantial 41% year-over-year decline in income from continuing operations before taxes, which totaled $649 million. However, the positive earnings surprise of 8.9% helped mitigate the decline in stock prices.
On a brighter note, AIG has intensified its share repurchase efforts. The company repurchased over $4.8 billion worth of common stock during the first three quarters of fiscal 2024, demonstrating its strong commitment to shareholders.
AIG is set to announce its fiscal 2024 results in the upcoming week, analysts expect its earnings to decline 28% year-over-year to $4.89 per share. The company has a mixed earnings surprise. While it has surpassed the Street’s bottom-line expectations thrice over the past four quarters, it has missed the estimates on one other occasion.
Among the 19 analysts covering AIG, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy,” two “Moderate Buy,” and seven “Hold” ratings.
This configuration is slightly less bullish than a month ago when 11 analysts gave a “Strong Buy” rating.
On Jan. 14, Wells Fargo (WFC) analyst Elyse Greenspan maintained an “Equal-Weight” rating on AIG while raising the price target to $77.
AIG’s mean price target of $84.11 represents a 15.1% premium to current price levels, while its street-high target of $96 indicates a 31.3% upside potential.
