AIG Sees Mixed Q1 Results Amid Market Fluctuations
New York-based American International Group, Inc. (AIG) provides insurance products for commercial, institutional, and individual clients across North America and globally. With a market capitalization of $49.8 billion, AIG operates through three segments: General Insurance, Life and Retirement, and Other Operations.
AIG’s Stock Performance Compared to Market Trends
The insurance giant has struggled to keep pace with the broader market recently but showed a strong rebound in 2025. AIG’s stock gained nearly 5.8% over the preceding 52 weeks, with a year-to-date jump of 14.1%. For context, the S&P 500 Index ($SPX) recorded 10.2% gains over the past year and a 3.9% dip in 2025.
When focusing on sector performance, AIG has underperformed relative to the iShares U.S. Insurance ETF (IAK), which achieved 18.6% gains in the past year, while AIG outperformed with a 5.9% return in 2025.
Q1 Results: Key Financial Metrics
AIG’s stock rose 3.5% in the trading session following the release of mixed Q1 results on May 1. The company’s net premiums written stood at $4.5 billion, unchanged from the same period last year. Total revenues crept up by 30 basis points year-over-year to $6.8 billion, signaling a miss against market expectations. Adjusted net income witnessed a significant decline of 18.6% year-over-year, totaling $702 million. However, AIG’s adjusted EPS of $1.17 beat consensus estimates by 11.4%. Furthermore, the company repurchased $2.2 billion in shares over the quarter and increased its quarterly dividend by 12.5%, reaffirming its focus on shareholder returns.
Future Earnings Projections
Looking ahead to fiscal 2025, which ends in December, analysts forecast a notable 24.2% year-over-year increase in adjusted EPS, targeting $6.15. AIG has a mixed earnings surprise history; it has exceeded bottom-line estimates three times over the past four quarters while falling short on one occasion.
Analyst Ratings Overview
AIG holds a consensus “Moderate Buy” rating among analysts. Of the 18 professionals covering the stock, recommendations include eight “Strong Buys,” two “Moderate Buys,” and eight “Holds.” This assessment is slightly less optimistic than a month ago when nine analysts suggested “Strong Buy” positions.
On May 2, Barclays (BCS) analyst Alex Scott maintained an “Overweight” rating on AIG, adjusting the price target to $93. AIG’s average price target of $88.72 implies a 6.8% premium to current levels, while the highest estimate of $96 indicates potential upside of 15.6%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data provided are for informational purposes only. For further details, please see the Barchart Disclosure Policy here.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
