AIG (AIG): Reassessing Valuation After Mixed Q3 Results and Negative Market Reaction

American International Group (AIG) beat expectations on adjusted Q3 2025 earnings, but the stock slipped as investors focused on weaker GAAP results, softer net premiums written, and investment and Corebridge related losses.

See our latest analysis for American International Group.

At around $77 per share, AIG has slipped back in recent weeks as the latest results refocused attention on earnings quality. However, its positive year to date share price return and solid multi year total shareholder returns suggest longer term momentum is still intact.

If AIG's mixed quarter has you rethinking your financials exposure, it could be a good moment to broaden your search and explore fast growing stocks with high insider ownership.

With the shares trading below analyst targets yet boasting strong multi year returns, is AIG quietly undervalued after a noisy quarter, or is the market already pricing in the insurer's next leg of earnings growth?

Most Popular Narrative Narrative: 12.7% Undervalued

Against AIG's last close of $77.07, the most followed narrative argues for a higher fair value, hinging on steady growth and disciplined profitability.

The acceleration of digitalization and artificial intelligence initiatives, such as the Gen AI deployment across underwriting and claims, positions AIG to enhance operational efficiency, improve underwriting precision, reduce fraud, and offer more tailored insurance products, supporting improved net margins and sustained earnings growth. Portfolio optimization and divestitures, along with the completion of the AIG Next transformation (surpassing $500 million in annual run rate expense savings), have created a leaner, more focused organization.

Read the complete narrative.

Curious how modest revenue growth, slightly higher margins, and a lower future earnings multiple can still point to upside from here? The narrative hinges on a tight blend of disciplined underwriting, shrinking share count, and a discount rate that quietly reshapes those future cash flows. Want to see exactly how those moving parts stack up to reach its fair value estimate?

Result: Fair Value of $88.28 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, climate driven catastrophe losses and intensifying P&C price competition could quickly pressure margins and undermine the seemingly conservative earnings and valuation assumptions.

Find out about the key risks to this American International Group narrative.

Build Your Own American International Group Narrative

If you see the story differently or would rather dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding American International Group.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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