NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) today reported financial results for the fourth quarter and full year ended December 31, 2025. "2025 was an exceptional year for AIG. We made tremendous progress against our strategy, delivered outstanding financial results, and achieved important milestones that have positioned AIG for a bright future,†said Peter Zaffino, AIG Chairman & Chief Executive Officer. "For the full year, adjusted after-tax income per dilut. ...

Core Viewpoint - American International Group, Inc. (AIG) is set to report its quarterly earnings on February 10, 2026, with analysts projecting a positive financial outlook, including a significant increase in earnings per share (EPS) and revenue growth [1][2]. Financial Projections - Analysts forecast an EPS of $1.89 for Q4 2025, representing a 45.4% increase year-over-year [2][6]. - Projected revenue for the same period is $7.1 billion, reflecting a 3.7% increase compared to the previous year [2][6]. Segment Performance - The General Insurance segment is expected to be a major contributor to AIG's results, with net investment income anticipated to rise by 19.8% [3][6]. - Despite this, AIG may face challenges with a slight 0.7% decline in net premiums and increased expenses, which could impact profit margins [3]. Valuation Metrics - AIG's price-to-earnings (P/E) ratio is currently at 13.49, indicating the market's valuation of its earnings [4]. - The price-to-sales ratio stands at 1.51, and the enterprise value to sales ratio is 1.79, reflecting its market value relative to revenue [4]. Financial Stability - The company has a low debt-to-equity ratio of 0.22, suggesting financial stability with minimal debt compared to equity [4]. - AIG's current ratio is 9.61, indicating a strong liquidity position to meet short-term liabilities [5].

Group 1: AIG's Investments - American International Group (AIG) has completed minority investments in Convex Group and Onex Corporation, acquiring approximately 35% of Convex for about $2.1 billion and a 9.9% stake in Onex for around $642 million [1][3] - The Convex deal leaves Onex as the majority owner with a 63% interest [1] Group 2: Underwriting and Governance - Starting from January 1, 2026, AIG will participate in a whole account quota share of Convex's underwriting portfolio, with plans to increase the volume ceded in 2027 and 2028 [2] - AIG will have the right to nominate two directors to Convex's board, subject to mutual agreement [2] Group 3: Onex Details - Onex, based in Toronto, Canada, manages approximately $55.9 billion in assets, including $8.4 billion of proprietary capital [3] - AIG will appoint one mutually agreed director to the Onex board and has committed to invest $2 billion over three years into Onex-managed funds, with preferred access rights [3] Group 4: Strategic Outlook - AIG's chairman & CEO Peter Zaffino expressed confidence that these long-term investments will strategically position AIG for future growth and will be accretive to AIG's earnings and return on equity in 2026 and beyond [4] - AIG has also entered into an alliance with CVC to support its investment strategy, focusing on insurance-linked solutions and private market opportunities [4][5]

Group 1 - AIG has completed acquisitions of minority stakes in Convex Group and Onex Corporation, acquiring approximately 35% equity interest in Convex valued at about $2.1 billion and a 9.9% stake in Onex worth approximately $642 million [1][2] - Following AIG's investment, Onex has become the majority shareholder in Convex with a 63% ownership interest, marking a significant milestone for Convex [2]

Group 1 - American International Group, Inc. (AIG) has completed acquisitions of minority ownership stakes in Convex Group Limited and Onex Corporation, enhancing its strategic positioning for future growth [1][2] - AIG acquired approximately 35% equity interest in Convex for about $2.1 billion and a 9.9% ownership stake in Onex for approximately $642 million, with Onex becoming the majority shareholder in Convex with a 63% ownership interest [2] - AIG's CEO, Peter Zaffino, expressed confidence that these long-term investments will be accretive to AIG's earnings and return on equity in 2026 and beyond, with AIG beginning participation in Convex's business starting January 1, 2026 [3]

Core Viewpoint - American International Group, Inc. (AIG) is expected to report its fourth-quarter 2025 results on February 10, 2026, with earnings estimated at $1.89 per share and revenues of $7.1 billion [1][7]. Earnings Estimates - The earnings estimate for the fourth quarter indicates a year-over-year increase of 45.4%, while the revenue estimate suggests a growth of 3.7% year-over-year [2]. - For the full year 2025, the revenue estimate is $27.4 billion, with earnings per share projected at $7.02, reflecting a 41.8% year-over-year increase [3]. Earnings Prediction Model - AIG is predicted to beat earnings estimates due to a positive Earnings ESP of +0.39% and a Zacks Rank of 3 (Hold) [4]. Revenue Drivers - The General Insurance business is expected to significantly contribute to AIG's revenues, with a projected 19.8% year-over-year increase in net investment income [6][7]. - The adjusted pre-tax income in General Insurance is estimated at $1.5 billion, indicating a 20.4% growth from the prior year [6]. Margin and Premiums Outlook - The consensus for the combined ratio is 89.8%, improving from 95.8% a year ago [8]. - However, net premiums earned in General Insurance are expected to decline by 0.7% year-over-year, with a projected figure of $5.9 billion [8].

Core Viewpoint - The market anticipates American International Group (AIG) to report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - AIG is expected to report quarterly earnings of $1.89 per share, reflecting a year-over-year increase of +45.4% [3]. - Revenues are projected to be $7.1 billion, which is a 3.7% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.31% lower in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for AIG is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.39%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - AIG currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, AIG exceeded the expected earnings of $1.68 per share by delivering $2.20, resulting in a surprise of +30.95% [13]. - Over the past four quarters, AIG has consistently beaten consensus EPS estimates [14]. Conclusion - AIG is positioned as a compelling candidate for an earnings beat, but investors should consider additional factors influencing stock performance ahead of the earnings release [17].

Core Viewpoint - Diamond Hill Capital's "Large Cap Fund" reported a cautious outlook on AI-driven market enthusiasm while highlighting the potential of fundamentally stable, high-quality, cash-generative businesses [1] Group 1: Market Performance - The Russell 1000 Value Index increased by 3.8% in Q4 2025, with the information technology sector rising by 11% and communication services by 9%, driven by AI optimism [1] - The Fund returned 1.41% in Q4, underperforming the Russell 1000 Value Index [1] Group 2: American International Group, Inc. (AIG) Performance - AIG was highlighted as a leading contributor to the Fund, despite a one-month return of -5.32% and a 52-week gain of 1.65% [2] - AIG's stock closed at $73.92 on February 2, 2026, with a market capitalization of $40.952 billion [2] Group 3: AIG's Financial Performance - AIG reported better-than-expected earnings, with effective expense management and share repurchases mitigating a weakening pricing environment [3] - The stock also benefited from speculation regarding a potential acquisition by Chubb [3] Group 4: Hedge Fund Interest in AIG - AIG was held by 43 hedge fund portfolios at the end of Q3 2025, down from 52 in the previous quarter [4] - While AIG is recognized for its investment potential, the company believes certain AI stocks may offer greater upside with less downside risk [4]

Company Overview - American International Group, Inc. (AIG) is valued at a market cap of $39.6 billion and is a leading provider of property and casualty insurance to commercial and institutional customers [1] Stock Performance - AIG has underperformed the broader market over the past 52 weeks, with shares declining 1.4%, while the S&P 500 Index surged 15.4% [1] - Year-to-date, AIG's stock is down 13.1%, compared to a 1.8% return for the S&P 500 [1] - AIG has also trailed behind the State Street SPDR S&P Insurance ETF (KIE), which dropped 2.9% on a year-to-date basis [2] Leadership Changes - On January 6, AIG shares tumbled 7.5% after the announcement that Chairman and CEO Peter Zaffino plans to step down as CEO by mid-year, moving to the role of Executive Chairman [3] - Eric Andersen from Aon will join as President and CEO-elect on February 16, 2026, but the leadership change has injected uncertainty into the market [3] Earnings Expectations - For the current fiscal year ending in December, analysts expect AIG's EPS to grow 41.8% year over year to $7.02 [4] - AIG has exceeded consensus earnings estimates in each of the last four quarters, indicating a promising earnings surprise history [4] Analyst Ratings - Among the 25 analysts covering AIG, the consensus rating is a "Moderate Buy," with seven "Strong Buy," two "Moderate Buy," and 16 "Hold" ratings [4] - RBC Capital analyst Rowland Mayor maintained a "Hold" rating on AIG with a price target of $85, indicating a 14.3% potential upside from current levels [5] - The mean price target of $87.41 represents a 17.5% premium from AIG's current price levels, while the Street-high price target of $101 suggests a 35.8% potential upside [5]

Industry Overview - The Zacks Multiline Insurance industry includes companies that provide bundled insurance coverage for various needs, enhancing customer retention and offering lower premium payments compared to individual policies [3] - The industry is characterized by diversified product portfolios, which help lower concentration risk and improve revenue generation [4] Key Trends - Product diversification is aiding multiline insurers in reducing concentration risk and improving retention ratios, with better pricing and prudent underwriting expected to benefit major players like AIG, Prudential, Markel, Principal Financial, and Everest Group [1] - The increasing acceptance of embedded insurance is projected to drive industry growth, with global premiums from embedded insurance expected to exceed $722 billion by 2030 [1] - The transition to green energy and the rise of cyber insurance due to increased AI adoption are identified as growth opportunities [4] Mergers and Acquisitions - The solid capital levels of multiline insurers are anticipated to fuel M&A activities, with a focus on diversifying operations into new business lines and geographies [2][5] - Consolidation is expected to rise in 2025, driven by technology-driven deals, particularly in the insurance technology sector [5] Technological Adoption - The industry is experiencing significant digitalization, utilizing technologies such as blockchain, AI, and advanced analytics to enhance operations and reduce costs [6] - Insurers are focusing on improving data and analytics capabilities to optimize premium calculations and risk management [6] Financial Performance - The Zacks Multiline Insurance industry currently holds a Zacks Industry Rank of 95, placing it in the top 39% of 243 Zacks industries, indicating positive earnings outlook [8][9] - The industry's earnings estimates have been revised upward by 6.7% for the current year, reflecting a positive trend [9] Stock Performance - Over the past year, the Multiline Insurance industry has underperformed compared to the Finance sector and the Zacks S&P 500 composite, with a collective gain of 1.2% [10] - The industry is currently trading at a trailing 12-month price-to-book (P/B) ratio of 2.63X, lower than the S&P 500's 8.66X and the sector's 4.32X [13] Company Highlights - **American International Group (AIG)**: Expected to benefit from strategic business de-risking and acquisitions, with a consensus estimate for 2026 earnings indicating a 10.7% year-over-year increase [19][20] - **Prudential Financial (PRU)**: Positioned for growth through its asset-based businesses and strategic initiatives, with a projected core adjusted operating EPS growth of 5% to 8% through 2027 [23][24] - **Markel Group (MKL)**: Aims to double its insurance operations to achieve $10 billion in annual premiums, targeting a $1 billion annual underwriting profit [26][27] - **Principal Financial Group (PFG)**: Continues to leverage its strong position in retirement and long-term savings, with a consensus estimate for 2026 earnings indicating a 13.4% year-over-year increase [30][31] - **Everest Group (EG)**: Set to benefit from product diversification and international expansion, with a consensus estimate for 2026 earnings indicating a 24.1% year-over-year increase [34][35]