AIG (AIG) Stock Forecast & Price Target

American International Gr is benefiting from improving core profitability, with General Insurance underwriting income up 10% to $686 million and underwriting margins supported by selective rate discipline, especially where pricing remains above loss costs. Management’s reaffirmed targets for 20%+ operating EPS CAGR from a $4.95 2024 base, a sub-30% GI expense ratio by 2027, and 10%+ dividend growth underscore confidence in durable earnings power, while $904 million of quarterly capital return highlights balance sheet strength. The stock also appears supported by tailwinds from higher reinvestment yields, improving private equity results, and upside from recent M&A as renewal and quota-share benefits emerge into 2H26 or early 2027.

American International Gr is pressured by a lower-growth outlook, with 2Q26 results showing that strong premium growth did not fully translate into earnings because of margin compression in International Commercial and pricing pressure in North America Property. Its 2Q26 reported EPS of $2.00 beat expectations, but the reported 9.4% ROE, softer combined-ratio trends, and a slower buyback pace suggest returns remain below peers and may not justify stronger valuation multiples. Added risks from underwriting, regulatory, and investment exposure, including lingering equity market exposure to Corebridge, could keep bottom-line results volatile even as the company executes well operationally.