AIG is a global insurance company that provides property casualty insurance, life insurance, retirement solutions and other financial services to customers in more than 80 countries and jurisdictions. The company operates in three segments: North America Commercial, International Commercial and Global Personal. AIG has gained 20% in the year-to-date (YTD) period, outperforming the industry average of 5.5%.

Headquartered in New York, AIG holds a market capitalization of $50.3 billion. It offers products and services that help businesses and individuals protect their assets, manage risks and provide retirement security. Its forward P/E ratio of 12.67X is higher than the industry average of 9.05X, indicating growing investor confidence.

Courtesy of solid prospects, AIG currently carries a Zacks Rank #3 (Hold).

The Zacks Consensus Estimate for American International’s 2025 earnings is pegged at $6.24 per share, indicating a 26.1% year-over-year rise. In the past 30 days, it has witnessed one upward estimate revision against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $27.4 billion for 2025. It beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 1.7%.

The company’s revenues benefited from increased net premium written (NPW), high retentions and new business generation. This, in turn, continues to drive the General Insurance segment.

AIG’s net premium written increased 8% year over year on a comparable basis in the first quarter of 2025. North America Commercial segment’s NPW rose 14% year over year, while its international commercial segment’s NPW grew 5% year over year and 3% on a comparable basis in its global personal business line in first-quarter 2025.

Tata AIG is its high-growth business, which had a compounded annual growth rate of 20%, outperforming the industry. AIG expects to continue growth at the same compounded annual growth rate through 2030.

AIG boasts a strong liquidity position backed by a solid cash balance and reduced debt level. This enables the company to engage in prudent deployment of capital via share buybacks and dividend payments. In May 2025, it also announced a quarterly dividend hike of 12.5%. Its leverage ratio has been improving, with total debt to total capital of 17.4% at the first quarter end, remaining below the industry’s average of 34.5%.

There are some factors, however, that investors should keep a careful eye on.

AIG grapples with a deteriorating combined ratio within its business lines, resulting from California wildfires. In the first quarter of 2025, the North America Commercial segment’s combined ratio deteriorated 580 basis points (bps) year over year, while in the International Commercial segment, it deteriorated 460 bps year over year, and it deteriorated 960 bps year over year in the global personal business line.

AIG has been incurring catastrophe losses over the years that have weighed on its underwriting margins. In 2023, it witnessed catastrophe losses of $1.1 billion, which escalated 9.4% year over year in 2024 and increased nearly fivefold year over year in the first quarter of 2025.

Some better-ranked stocks in the broader finance space are MTG, HRTG and EVER, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see

The Zacks Consensus Estimate for MGIC Investment’s current-year earnings of $2.90 per share has witnessed two upward revisions in the past 30 days against none in the opposite direction. MGIC Investment beat earnings estimates in each of the trailing four quarters, with the average surprise being 15.9%. The consensus estimate for current-year revenues is pegged at $1.2 billion, implying 1.8% year-over-year growth.

The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, suggesting 4.6% year-over-year growth.

The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share, implying 33% year-over-year growth. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus mark for the current-year revenues is pegged at $644.1 million, indicating 28.8% year-over-year growth.

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 American International Group, Inc. (AIG): Free Stock Analysis Report

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