Update shared on 04 Sep 2025
Analysts maintain a Neutral stance on AIG as the P&C insurance sector transitions to softer pricing and increased competition, heightening margin and growth uncertainties, with the consensus price target unchanged at $88.28.
Analyst Commentary
- Bullish analysts believe the property and casualty (P&C) insurance market is transitioning away from a prolonged hard pricing environment, leading to greater selectivity in underwriting.
- Recent Q2 earnings across the sector signal a shift to softer pricing, particularly in commercial lines, suggesting future margin compression and increased competition.
- Insurance brokers are viewed as more resilient to the effects of the softer P&C market due to their fee-based revenue and less direct exposure to underwriting cycles.
- Personal lines insurers are expected to face a "late soft" market, marked by heightened competition and challenges in achieving growth targets over the next year.
- For major insurers like AIG, a Neutral stance and moderate price target reflect sector-wide uncertainties, such as dependence on unpredictable wind season outcomes and broader industry transitions.
What's in the News
- Repurchased 27,365,553 shares (4.72%) for $2.25 billion between April and August 2025.
- Completed total repurchase of 971,441,087 shares for $58.33 billion under the buyback program initiated in 2013.
Valuation Changes
Summary of Valuation Changes for American International Group
- The Consensus Analyst Price Target remained effectively unchanged, at $88.28.
- The Consensus Revenue Growth forecasts for American International Group remained effectively unchanged, at 4.5% per annum.
- The Future P/E for American International Group remained effectively unchanged, at 12.55x.
Disclaimer
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