American International Group, Inc. (AIG) Stock Analysis

AIG has completed a multi-year transformation from a decentralized financial conglomerate into a focused, high-performing global property & casualty insurer. By Q1 2026, results indicate the company has moved beyond “turnaround” into sustained value creation: adjusted after-tax EPS rose to $2.11 (+80% YoY) and beat consensus, underwriting income jumped to $774M (+219% YoY), and Core Operating ROE expanded to 12.2%—near the high end of its 10–13% target range. These improvements build on 2025’s inflection, when AIG generated ~$2.3B underwriting income (first time above $2B since 2008), delivered a ~90.1% calendar-year combined ratio and 88.3% accident-year combined ratio, and produced $7.09 adjusted EPS, effectively replacing earnings from divested businesses. The strategic foundation includes the Corebridge separation (nearly $20B value realized, ownership reduced to ~10%), strong capital returns (notably buybacks), balance-sheet strengthening (18% debt-to-capital and ratings upgrades), and a technology moat from AIG Assist and the Palantir-enabled AIG Ontology. A planned CEO transition (Zaffino to Executive Chair; Andersen to CEO) is positioned as continuity from strength.