
AIG (AIG) Stock Forecast & Price Target
AIG (AIG) Analyst Ratings
Bulls say
American International Group (AIG) is showing potential for continued growth, with expectations for an improved price-to-earnings (P/E) multiple driven by accelerated premium growth and enhancements in its expense and combined ratios. The firm's underwriting improvements and external rate increases are anticipated to enhance profitability in its property and casualty (P&C) insurance segment, while its recent stock performance indicates rising investor confidence in its reserve adequacy and return on equity (ROE) prospects. Furthermore, AIG is projected to achieve a core ROE of approximately 13% by 2027, supported by capital returns and operational efficiencies despite market pressures.
Bears say
The analysis highlights a negative outlook on American International Group's stock due to several financial challenges. First, the company's GAAP premium leverage has fallen below 0.7x, significantly below historical averages, indicating potential concerns about its ability to generate premiums relative to its core operating value. Additionally, ongoing pressure on private equity yields, specifically a decline below the long-term expected return, alongside elevated catastrophe losses and decelerating commercial insurance rates, collectively suggest potential difficulties in achieving robust EPS and book value growth moving forward.
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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