American International Group, I (AIG) Stock Analysis
AIG’s pure-play P&C transformation, improving 87.3% combined ratio, aggressive buybacks, and 10.05x forward P/E create a discounted re-rating opportunity.
Overview
American International Group is a global property and casualty insurer serving commercial, institutional, and individual clients in more than 200 countries and jurisdictions. Its strategic transformation is the central investment development: after years of divestitures, AIG fully exited life and retirement operations through the May 2026 Corebridge separation, leaving a more focused P&C franchise with reduced capital intensity and complexity. **Operating momentum has materially improved:** Q1 2026 adjusted after-tax income per diluted share rose 80% year over year to $2.11, beating the $1.88 consensus, while underwriting income more than tripled and the consolidated combined ratio improved to 87.3%. Operating revenue grew 5.4% to $6.97 billion, and Core Operating ROE reached 12.2%. AIG also returned $6.8 billion to shareholders in 2025, including $5.8 billion of repurchases, helping reduce diluted shares from 606.1 million in 2024 to 532.9 million by March 31, 2026. **Valuation remains discounted:** forward P/E is 10.05x and P/B is 1.03x versus Travelers at 13.5x/1.47x and Chubb at 15.5x/1.89x. Near-term catalysts include Q2 earnings on August 6, 2026, continued buybacks, AI efficiency gains, and evidence that the CEO transition preserves underwriting execution.