American International Group: Mixed Underwriting, Likely Caps Upside Despite Buybacks
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American International Group (AIG) has experienced limited stock price growth due to valuation constraints and modest earnings growth, despite significant share buybacks and improved balance sheet health. Core underwriting improvements have peaked, and catastrophe losses along with modest investment income gains limit EPS growth potential.

February 12, 2025 | 4:00 am
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NEUTRAL IMPACT
AIG's stock price has been range-bound with limited upside due to valuation constraints and modest earnings growth. Despite significant share buybacks and improved balance sheet health, core underwriting improvements have peaked, and EPS growth is limited by catastrophe losses and modest investment income gains.
AIG's stock has been range-bound due to valuation constraints and modest earnings growth. The company's transformational period included divestitures and significant share buybacks, which improved balance sheet health. However, core underwriting improvements have peaked, and EPS growth is limited by catastrophe losses and modest investment income gains. These factors suggest a neutral short-term impact on AIG's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100