AIG's Valuation in Focus Following Executive Retirement and Leadership Reshuffle

American International Group (AIG) is drawing attention after announcing the retirement of Don Bailey, its Executive Vice President and CEO of North America Commercial Insurance, as well as a reorganization of leadership across its North America operations.

See our latest analysis for American International Group.

This leadership shake-up at AIG comes after a challenging stretch for the stock, with share price returns slipping in recent months even as the company posts stable financials and positions for future growth. Over the past year, total shareholder return has been a solid 12%, reflecting AIG’s steady reinvestment and ongoing dividend history. While momentum has wavered in the short term, the long-term view suggests room for optimism if the new management team executes well.

If changes at AIG have you thinking more broadly about what's out there, now is a smart time to discover fast growing stocks with high insider ownership.

But with shares trading nearly 8% below analyst targets and an estimated 41% discount to intrinsic value, is now the moment to consider AIG’s potential, or has the market already factored in its growth prospects?

Most Popular Narrative: 8.2% Undervalued

With the latest close at $81.02 and a narrative fair value of $88.28, the gap points to anticipated upside as the market weighs AIG’s profit momentum against evolving sector pressures.

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. These factors support improved net margins and sustained earnings growth.

Read the complete narrative.

The math behind this fair value relies on bigger margins, bold growth bets, and a pivotal shift in how insurance claims are written and managed. Want to see which forecasts drive the optimism, and what key assumptions this popular narrative leans on?

Result: Fair Value of $88.28 (UNDERVALUED)

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

However, risks such as increasing catastrophe losses and legal uncertainties could quickly change the outlook if claims severity or costs rise unexpectedly.

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

Build Your Own American International Group Narrative

If you want to test your own assumptions, or see the story from another angle, you can build a personal narrative in just a few 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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