AMERICAN INTERNATIONAL GROUP, INC. (AIG)

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AI: Fair-priced

Price checkThe shares look fairly priced because healthy profits are balanced by meaningful insurance risks.

At the most recent verifiable close, $76.54 on August 14, AIG traded at 0.99 times its $77.39 reported book value, meaning shareholder net assets per share, and 1.06 times its $72.18 adjusted tangible book value. First-half adjusted earnings were $4.11 per share; simply doubling them gives $8.22, making the price 9.3 times annualized earnings. Trailing reported earnings are about $5.48, implying 14.0 times. With an 11.1% core operating return on equity, this looks reasonable rather than clearly cheap.

Big pictureProfit has recovered, but cash flow and past earnings remain uneven across insurance cycles.

Net income recovered to $3.10 billion in 2025 from a $1.40 billion loss in 2024, then reached $1.71 billion in the first half of 2026. Operating cash flow, cash produced by core activity before financing, was steadier at $3.27 billion in 2024 and $3.31 billion in 2025, but below 2023's $6.24 billion. First-half 2026 produced $1.87 billion, mostly during the second quarter. Claim timing, investment activity, and the Corebridge separation limit comparisons, so durability is improving but not yet proven.

Business strengthUnderwriting is strong and share buybacks add value, though total equity has declined.

Second-quarter underwriting income rose 10% to $686 million. The combined ratio—claims and expenses for each $100 of premium—was 89.0, indicating an underwriting profit; however, $145 million of favorable old-claim reserve changes helped, while catastrophes cost $210 million. Debt was 18.1% of total capital and equity was $40.61 billion. Shares fell from 606.1 million at 2024 year-end to 524.7 million, limiting dilution. Yet 2025's $5.84 billion of buybacks exceeded $3.31 billion of operating cash flow, so future repurchases must remain capital-aware.

What could change the storySustained profitable growth would unlock upside, while weaker pricing or reserves would erase it.

The bull case is continued 9% premium growth, a combined ratio below 90, and adjusted earnings near the first-half annualized pace; that would make roughly nine times earnings attractive and let buybacks compound value. The bear case is visible in International Commercial, where the combined ratio worsened from 85.9 to 91.3 as catastrophes, business mix, and insurance-rate pressure increased. The current price requires core returns near 11%, adequate old-claim reserves, and no destructive catastrophe year. Sustained book-value growth would strengthen the thesis; reserve strengthening would weaken it.

$76.54 price considered

AI: News

Strong second-quarter underwritingSecond-quarter insurance profit grew, but falling investment income and international pressure tempered the result.

On August 6, 2026, AIG reported $686 million of underwriting income, up 10%, while net premiums written rose 9% to $7.52 billion. Adjusted earnings reached $2.00 per share, versus $1.81 a year earlier, although reported earnings fell to $1.78 and investment income declined. International Commercial's combined ratio worsened to 91.3. Shares fell 1.87% after hours; that contemporaneous move is consistent with a mixed reading, but does not prove the results alone caused it.

Corebridge exit completedAIG completed its life-business exit, gaining cash and removing a major source of earnings swings.

On May 5, 2026, AIG agreed to sell its remaining approximately 25 million Corebridge shares, with completion expected May 7 and net proceeds of about $710 million. The second-quarter release confirmed the sale. This finished AIG's five-year separation from its life and retirement business, simplifying the company around property and casualty insurance. It also removed Corebridge share-price movements and dividend income from future results while providing cash for capital needs. No reliable event-specific market reaction was established.

First-quarter profit jumpFirst-quarter insurance profit surged, supporting a higher dividend and confidence in stronger recurring earnings.

On April 30, 2026, AIG reported adjusted earnings of $2.11 per share, up 80% year over year, and underwriting income of $774 million, up 219%. Its combined ratio improved to 87.3, while the quarterly dividend increased 11% to $0.50. Shares closed May 1 at $78.77, up 5.31% from April 30. The timing is consistent with a favorable reaction, although broader trading and other information prevent certain attribution.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$26.77B	$27.25B	$27.94B	$30.00B	$52.16B	$43.74B	$49.75B	$47.39B	$49.52B	$52.37B	$58.33B	$64.41B	$68.87B	$71.21B	$65.11B	$72.83B	$75.45B	−$6.84B	$103.63B
Net income	$3.10B	−$1.40B	$3.64B	$10.23B	$10.37B	−$5.94B	$3.35B	−$6.0M	−$6.08B	−$849.0M	$2.20B	$7.53B	$9.09B	$3.44B	$20.62B	$10.06B	−$10.95B	−$99.29B	$6.20B
Basic EPSper diluted share	$5.48	-$2.19	$5.02	$13.10	$12.10	-$6.88	$3.79	-$0.01	-$6.54	-$0.78	$1.69	$5.27	$6.16	$2.04	$11.01	—	—	—	—
Diluted EPSper diluted share	$5.43	-$2.17	$4.98	$12.94	$11.95	-$6.88	$3.74	-$0.01	-$6.54	-$0.78	$1.65	$5.20	$6.13	$2.04	$11.01	—	—	—	—

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys16$928.3K disclosed value

Sells (SEC code S)7$11.96M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Dec 30, 2025Form 4	Walsh KeithEVP and CFO	BuyCommon Stock	5.4	$86.54	$467.316	42.8K
Dec 30, 2025Form 4	Inglis John CDirector	BuyCommon Stock	13.88	$86.47	$1.2K	2.7K
Sep 30, 2025Form 4	Walsh KeithEVP and CFO	BuyCommon Stock	5.97	$77.75	$464.1675	42.8K
Sep 30, 2025Form 4	Inglis John CDirector	BuyCommon Stock	15.29	$78.03	$1.2K	2.7K
Aug 8, 2025Form 4	Inglis John CDirector	BuyCommon Stock	653	$77.04	$50.3K	2.7K

Review ownership filings at SEC.gov ↗

AMERICAN INTERNATIONAL GROUP, INC. (AIG)

Financial charts

Financial statements

Insider buys & sells