American International Group, Inc. (AIG) Stock Analysis
AIG’s post-Corebridge transformation is producing stronger underwriting and disciplined capital returns, while an approximately 11x forward P/E leaves room for re-rating if management delivers its expense-ratio target.
Overview
American International Group has transformed from a complex financial conglomerate into a focused global property-and-casualty insurer after separating Corebridge Financial and exiting non-core operations. It serves commercial and personal clients in more than 200 countries through North America Commercial, International Commercial, and Global Personal, earning premiums and investment income on insurance float. FY2025 revenue was $26.8 billion, and General Insurance underwriting income was $2.33 billion. In Q2 2026, General Insurance net premiums written rose 9% year over year to $7.52 billion; adjusted EPS was $2.00 versus $1.81 a year earlier and $1.93 consensus, while the 89.0% combined ratio improved 30 basis points. Core Operating ROE was 11.1%, within the 10%–13% target. **The central operational catalyst is reducing the expense ratio below 30% by 2027**, supported by automation and AIG Assist. Shares near $78 trade at roughly 11.0x 2026E EPS of $8.07 and about 1.01x book value, below peer valuation multiples. Near-term sentiment is tempered by the CEO transition and softer property pricing, but the report sees potential for earnings growth, capital returns, and a valuation re-rating.