
AIG (AIG) Stock Forecast & Price Target
AIG (AIG) Analyst Ratings
Bulls say
American International Group (AIG) has shown a substantial improvement in its property and casualty (P&C) underwriting operations, which is likely to result in more stable return on equity (ROE) going forward. The company reported a remarkable 10x increase in submissions since 2018 and is focused on growth in its P&C unit, particularly benefiting from strong performance in Marine and Energy products. Furthermore, AIG's total general insurance net investment income rose 13.1% to $881 million, reflecting effective financial management and a significant turnaround in actuarial and reserve functions, contributing to overall valuation support.
Bears say
The analysis notes that American International Group (AIG) faces significant challenges, primarily due to poor underwriting results from its Convex and recently acquired EG business, which are projected to limit growth potential and reduce underwriting margins. The company's performance is further impacted by a competitive environment and slowing macroeconomic growth, leading to expectations of a decline in share value to 0.8 times book value per share, compounded by a slower pace of share buybacks. Additionally, AIG has experienced long-term underperformance relative to peers, reflected in lower return on equity and profitability struggles within its Global Personal Lines business, raising concerns about future earnings growth.
This aggregate rating is based on analysts' research of AIG and is not a guaranteed prediction by Public.com or investment advice.
AIG (AIG) Analyst Forecast & Price Prediction
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