With a market cap of $42.3 billion, American International Group, Inc. (AIG) is a global insurance provider offering a wide range of products and services to commercial, institutional, and individual customers across North America and international markets. Its offerings span property and casualty insurance, liability coverage, personal insurance, and specialized risk solutions, along with mortgage and other loan services.
Shares of the New York-based company have lagged behind the broader market over the past 52 weeks. AIG stock has declined 5.9% over this time frame, while the broader S&P 500 Index ($SPX) has returned 26.9%. Moreover, shares of the company are down nearly 8% on a YTD basis, compared to SPX’s 5.5% gain.
Focusing more closely, shares of American International have underperformed the State Street Financial Select Sector SPDR ETF’s (XLF) 4.4% rise over the past 52 weeks.
Shares of American International rose 5.3% following its Q1 2026 results on Apr. 30, driven by a strong earnings beat, with adjusted EPS of $2.11 and adjusted pretax income of $1.5 billion, alongside underwriting income more than tripling to $774 million. Investors were encouraged by robust growth and profitability, including 18% year-over-year growth in General Insurance net premiums written and improved combined ratios.
Sentiment was further boosted by shareholder returns and outlook, including an 11% dividend hike to $0.50, $760 million in capital returned, and guidance for low to mid-teens premium growth in 2026.
For the fiscal year ending in December 2026, analysts expect American International’s adjusted EPS to increase 9.3% year-over-year to $7.75. The company’s earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, two “Moderate Buys,” and 15 “Holds.”
On May 1, BofA raised its price target on American International to $84 while maintaining a “Neutral” rating.
The mean price target of $86.91 represents a 10.7% premium to AIG’s current price levels. The Street-high price target of $101 suggests a 28.7% potential upside.
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.
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