American International Group Stock Outlook: Is Wall Street Bullish or Bearish?

Core Viewpoint - American International Group, Inc. (AIG) has underperformed the broader market over the past year, with a 2.8% gain compared to the S&P 500's 17.7% increase [2]. Company Overview - AIG is a New York-based insurance company valued at $43.7 billion, offering property-casualty insurance, life insurance, and retirement services [1]. Stock Performance - AIG's stock has shown marginal gains compared to the Invesco KBW Property & Casualty Insurance ETF, which has also gained slightly over the past year [3]. - In 2025, AIG's stock rose 8.5%, while the S&P 500 increased by 16.3% year-to-date [2]. Financial Results - AIG reported Q2 results with an adjusted EPS of $1.81, surpassing Wall Street expectations of $1.58. However, shares fell over 3% in the following trading session [5]. - The company's general insurance net premiums written were $6.9 billion, showing a slight year-over-year decline [5]. Earnings Forecast - Analysts project AIG's EPS to grow by 30.9% to $6.48 for the current fiscal year ending in December [6]. - AIG has consistently beaten consensus estimates in the last four quarters, indicating strong earnings performance [6]. Analyst Ratings - Among 23 analysts covering AIG, the consensus rating is a "Moderate Buy," with nine "Strong Buy" ratings, two "Moderate Buys," and 12 "Holds" [6]. - BMO Capital analyst Michael Zaremski maintained a "Hold" rating with a price target of $83, suggesting a potential upside of 5.1% from current levels [7]. Challenges - AIG's underperformance is attributed to increased catastrophe losses, social inflation, tariffs affecting margins, and regulatory scrutiny on AI-driven investments [4].