AIG (AIG) Stock Forecast & Price Target

American International Group (AIG) has significantly enhanced its property and casualty (P&C) underwriting operations, which is likely to result in improved and more stable return on equity (ROE) moving forward. There has been a notable increase in submissions, growing tenfold since 2018, coupled with targeted growth in the Marine and Energy product lines, which underpins AIG's expansion strategy. Furthermore, the company's focus on profitable growth, supplemented by advancements in AI-driven underwriting efficiency and aggressive share repurchase activities, positions AIG favorably for strong performance in the upcoming year.

The negative outlook on American International Group (AIG) is primarily driven by poor underwriting results at its Convex and recently acquired EG business, which are expected to constrain growth potential and underwriting margins. Furthermore, the company's historical underperformance in key underwriting metrics has contributed to a wide discount compared to peers, compounded by a slowing macroeconomic environment and reduced share buybacks. Profitability challenges within AIG's Global Personal Lines business and lowered earnings projections for 2026 and 2027, reflecting anticipated slower premium growth and higher expense ratios, further exacerbate the overall negative sentiment toward the stock.