| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 83 | 13.7x | 17.8x | Top tier | |
Growth | 24 | -4.2% | 7.1% | Bottom tier | |
Quality | 46 | — | — | Around median | |
Safety | 30 | — | — | Bottom tier | |
Capital Return | 73 | 2.46% | 2.12% | Top tier | |
Momentum | 48 | -1.5% | 2.9% | Around median | |
Sentiment | 61 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
American International Group, Inc. operates as a globally focused property and casualty insurance company, generating income primarily from insurance premiums, underwriting profits, and returns on its investment portfolio. Its General Insurance business is divided among North America Commercial, International Commercial, and Global Personal Insurance; the growth areas mentioned include Accident & Health, High Net Worth insurance, Marine, Energy, Cyber, Liability, and Property lines. AIG also provides multi-coverage solutions for data center projects owned by hyperscale artificial intelligence companies, combining project financing, construction, Marine, Cyber, Energy, and multinational programs.
In fiscal Q2 2026, AIG recorded revenue of $7.1 billion, compared with $6.7 billion in fiscal Q1 2026, while net income reached $948 million and earnings per share were $1.78. Net income was equivalent to approximately 13.4% of revenue, while adjusted after-tax income reached $1.1 billion and adjusted after-tax earnings per share were $2.00, up 10% year over year. Core operating return on equity was 11.1% for the quarter and 11.6% for the first half of fiscal 2026.
Underwriting income reached $686 million in fiscal Q2 2026, up 10% year over year, while the adjusted accident-year combined ratio improved by 30 basis points to 88.1% and the calendar-year combined ratio reached 89.0%. Net premiums written increased 9%, or 11% excluding North America Property; Global Commercial grew 9%, North America Commercial 9%, International Commercial 10%, and Global Personal Insurance 8%. General Insurance net premiums earned reached $6.2 billion, up 5% year over year, showing that the results mix relied on premium growth and improved underwriting, with a contribution from strategic transactions.
The analyst consensus on AIG is “Neutral,” with an average price target of $86.88 and a wide range between $80 and $98; the average is very close to the upper end of the 52-week range of $87.29, compared with a low of $71.25. This valuation balances improved underwriting and strong growth in the first half of fiscal 2026 against pressure on Property pricing, while Wells Fargo's reduction of its target from $89 to $85 on August 10, 2026, reflects caution regarding premium growth and return on equity. No valid price-to-earnings ratio was provided in the data, so it cannot be used to determine whether the valuation is low or high.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
AIG's revenue in fiscal Q2 2026 reached approximately $7.1 billion, while net income was $948 million and earnings per share were $1.78. Adjusted after-tax income reached $1.1 billion and adjusted earnings per share were $2.00, up 10% year over year. Results were supported by underwriting income of $686 million, with the adjusted accident-year combined ratio improving to 88.1%. General Insurance net investment income of $871 million also contributed to the earnings base.
Net premiums written increased 9% in fiscal Q2 2026 and 13% in the first half, but management said distinguishing between organic and transaction-driven growth had become more difficult at the individual client level. It estimated organic growth for the quarter in the low-to-mid-single-digit range, while the remainder of the increase came from transactions such as Everest renewal rights and other strategic arrangements. New business in Global Commercial, including these transactions, increased 37% to $1.9 billion. During the quarter, the company also announced an agreement to acquire Everest Insurance's operations in Colombia, with completion of the transaction expected to provide it with broader access to the insurance market there.
Automated analysis for informational purposes only — not investment advice.
Management said on August 7, 2026, that increased capacity and competition had pressured Property pricing, particularly in the North America E&S market. AIG therefore reduced its retention of Lexington Property premiums by 9 percentage points and declined business that did not meet its risk-adjusted return requirements. Pricing and these actions reduced North America growth by more than 3 percentage points in fiscal Q2 2026. At the same time, the company continued to selectively pursue opportunities in North America Retail Property and International Property, where price declines were more moderate.
AIG is expanding the Underwriting by AIG Assist and Claims by AIG Assist platforms to improve underwriting decisions, claims service speed, and productivity. Management said during the August 7, 2026, call that underwriting teams using the system review more submissions and generate quotes faster. Submission data also enables analysis of broker results at the company, office, and individual broker levels, directing resources toward business that is better aligned with risk appetite. Management emphasized that the objective is to increase employee efficiency and their ability to serve more clients, not to reduce headcount.
The company recorded favorable net prior-year reserve development of $146 million in fiscal Q2 2026, supported by improvements of $177 million in U.S. Workers' Compensation and $79 million in U.S. Property and Special Risks. Conversely, it strengthened U.S. Excess Casualty reserves by $74 million, primarily for the 2016 and 2023 accident years. Management affirmed that the 2023 experience remained within the expected range of outcomes and had not shown an actual change in frequency or severity. However, it also said it had seen no evidence of moderation in U.S. social inflation, leaving claims severity risks in place.
The analyst consensus is “Neutral,” with an average price target of $86.88, a high target of $98, and a low target of $80. The average target is close to the top of the 52-week range of $87.29, while the bottom of the range is $71.25. On August 10, 2026, Wells Fargo lowered its target from $89 to $85 due to concerns about the difficulty of achieving fiscal 2026 premium growth targets, weakness in the commercial market, and failure to reach return-on-equity targets. The valuation therefore combines improved underwriting results with clear caution regarding the sustainability of growth and returns.
