Orin
AIGNYSE·Insurance - Diversified

American International Group, Inc. AIG

Market cap $39.3BP/E 13.6× trailingGross margin 38.1%Reports Wed 4 Nov, after the close
$74.10
−0.72 (−0.96%)live 11:30 ET
52-wk $71.25 – $87.29
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Orin's take
0.62conviction · moderate
Refreshed 26 Aug · take v8. A new filing or a print queues the next refresh.

AIG's FY2025 marked a profitability recovery with EPS of $5.43 and net income of $3.096B after FY2024's net loss of $1.404B, and Q2 2026 results showed 10% adjusted EPS growth with 9% net written premium growth per management. However, revenue continues to decline (-1.82% YoY in FY2025 to $26.77B), the stock trades at a 28.6% P/E premium to the peer median (13.86x vs 10.78x), and Executive Chair Peter Zaffino sold 200,000 shares at $76.47 on August 12, 2026.

With the stock below both its 50-day ($77.70) and 200-day ($77.40) moving averages and MACD bearish (histogram -0.13), but EV/EBITDA at a 25.6% discount to peers, the risk/reward remains balanced; hold pending evidence of sustained revenue stabilization.

What could go wrong

  • Persistent pricing pressure. Management noted competitive pricing pressure in North American property insurance during Q2 2026 earnings, which could compress underwriting margins going forward.
  • Insider selling. Executive Chair Peter Zaffino sold 200,000 shares at $76.47 on August 12, 2026, and additional shares on August 13, 2026; 24-month net insider value is -$8.1M.
  • Revenue erosion. Revenue has declined for five consecutive years on a reported basis, with FY2025 revenue of $26.77B down -1.82% YoY, raising questions about organic growth sustainability.
  • Weak technicals. Stock at $76.38 sits below both the 50-day MA ($77.70) and 200-day MA ($77.40) with RSI at 44.81 and bearish MACD histogram, suggesting near-term downside risk.

What would change my mind

Revenue returns to growth. Quarterly reported revenue turns positive year-over-year for the first time since the Life & Retirement separationbullish
Insider buying resumes. Open-market insider acquisitions by executives or directors exceed dispositions over a trailing 90-day windowbullish
Pricing hardens in North American property. Management guides to rate increases exceeding loss trend in the North American property book for two consecutive quartersbullish

Where this comes from: FMP FY2025 annual · FMP FY2024 annual · FMP FY2025 annual; derived_metrics revenue_growth_yoy · Seeking Alpha news article, 2026-08-10. Orin's read on AIG; not advice.

Twelve months actual closes to 2026-09-24 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$2.6B0.1% of fund
Wellington Management Group Llp$2.3B0.4% of fund
Vanguard Portfolio Management$2.0B0.1% of fund
State Street$1.9B0.1% of fund
Harris Associates L P$1.5B2.0% of fund
Geode Capital Management$1.1B0.1% of fund

96 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 216 Form 4 filings, net −$8.1M. Of the 50 on hand, 0 were open-market purchases and 3 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Financial Services
MetricNowOwn medianSector
P/E13.6×—21.6×
EV/EBITDA6.3×7.3×—
P/S1.49×1.64×—
P/B1.0×1.1×—

Its P/E sits 80th percentile of its own last 5 years (+0.72σ from its own mean).

What the price assumes

0.7%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $3.3B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

41 firms · 2026-09-24
Consensus target

$87

$80 – $98 · +18% against today's price

How they rate it
  • 15 buy or overweight
  • 25 hold
  • 1 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 10.7× of 5 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
AIGAmerican International Group, Inc.$40B13.6×6.3×38.1%11.1%7%
ACGLArch Capital Group Ltd.$33B7.3×6.5×46.2%24.4%20%
AMPAmeriprise Financial, Inc.$44B11.5×7.3×50.2%19.9%62%
HIGThe Hartford Financial Services Group, Inc.$34B8.1×7.9×43.9%15.0%23%
METMetLife, Inc.$63B18.5×10.1×25.6%4.6%13%
PRUPrudential Financial, Inc.$41B10.7×8.8×30.8%5.9%12%

The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 27.5% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 10.6×FY25 15.6×

What its sector has traded at

Financial Services
FY14 29.6×FY26 23.8×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$371$75.22 · +393%2026-06-10
Levered DCF$137$75.22 · +82%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $74.10
52-week range$71 – $87
Analyst targets$80 – $98
Standard DCF$371 as of 2026-06-10, when it was $75.22
Levered DCF$137 as of 2026-06-10, when it was $75.22
At own 5y-median P/E (5×)$27
At 5y P/E range (-31–16×)$-173 – $86
At sector P/E (22×)$119

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.