What's Next For AIG Stock?

Financial Performance - AIG's stock gained around 7% over the last 12 months, underperforming the S&P 500 which rose over 25% and its peer Travelers which gained 25% [1] - Q3 2024 adjusted earnings rose 18% to $1.23 per share, driven by strong underwriting and higher investment returns [1] - Net premiums in Global Commercial business increased 6% YoY, with a strong retention rate of 88% and $1.1 billion in new business [1] - Net investment income rose 14% to $973 million in the last quarter [1] Business Strategy - AIG has been focusing more on property and casualty insurance after spinning off its life insurance and retirement business [2] - Property and casualty insurance offers higher margins and more flexibility in adjusting premiums compared to life insurance [2] - The company repurchased $1.5 billion of common shares in Q3 2024, with total capital returns to shareholders reaching $6 billion in the first nine months of 2024 [2] Market Outlook - AIG's stock has increased in value each year from 2021 to 2024, with returns of 54%, 14%, 10%, and 10% respectively [2] - The recent U.S. presidential election could benefit insurers through potential regulatory relief and tax cuts [2] - AIG's stock is valued at about $90 per share, 24% above the current market price [2]