Goldman Sachs Sees Market Warning Signs – But Likes These 2 Stocks

Group 1: AIG Financial Performance - AIG reported $670 million in general insurance underwriting income for 4Q25, a 48% increase from the prior year [1] - The company achieved a non-GAAP adjusted after-tax income per diluted share of $1.96, reflecting a 51% year-over-year gain and exceeding forecasts by $0.06 [1] - AIG's net premiums written were $23.9 billion in 2024 and $23.8 billion in 2025 [4] Group 2: Dividend and Capital Return - AIG declared a regular dividend of $0.45 per common share, with an annualized dividend of $1.80, yielding 2.25% [2] - In the previous year, AIG returned $6.8 billion to shareholders through $5.8 billion in share repurchases and $1 billion in dividends [2] Group 3: Business Segments and Products - AIG offers a range of insurance products, including property and casualty, accident and health, and financial, life, and liability coverage [3] - The company operates in over 200 countries and has three main segments: North American Commercial, International Commercial, and Global Personal [4] Group 4: Analyst Insights and Market Position - Goldman Sachs analyst Robert Cox views AIG as having peer-high earnings growth and improving return on equity (ROE), supported by a strong underwriting position and capital flexibility [8] - AIG's valuation at 1.1x price-to-book (P/B) and 10.4x price-to-earnings (P/E) is considered attractive relative to its ROE trajectory [8] - The stock has a Moderate Buy consensus rating based on 17 reviews, with a current trading price of $80.07 and an average target price of $87, indicating a potential 9% gain [8]