The Bull Case for AIG Could Change Following Dividend Hike, Major Buyback, and Q2 Financial Turnaround

• On August 6, 2025, American International Group's Board of Directors declared a quarterly cash dividend of US$0.45 per share, payable on September 30, 2025, and announced the completion of a share repurchase program totaling over 971 million shares since 2013 for US$58.33 billion, including a recent tranche of 27.37 million shares for US$2.25 billion.
• This announcement was accompanied by news of a strong financial turnaround for AIG in the second quarter of 2025, as the company reported higher revenue and a return to profitability compared to the previous year's net loss.
• With the company's update on a substantial completed share buyback, we'll look at how these actions potentially influence AIG's longer-term investment outlook.

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American International Group Investment Narrative Recap

To be a long-term shareholder of American International Group, you need to believe in AIG's ability to manage risk, generate stable earnings, and capitalize on expense efficiency as it sharpens its business focus. The latest dividend declaration and share repurchase completion indicate a solid financial footing, but they do not materially change the central short-term catalyst, AIG’s ongoing transformation, especially via operational streamlining and digitalization. The primary risk continues to be post-divestiture revenue concentration, with climate-related and litigation exposures still looming.

Among recent announcements, AIG’s return to profitability in the second quarter of 2025 stands out. With quarterly net income of US$1,144 million following last year’s net loss, this turnaround reinforces the importance of recent business optimizations, which remain a key catalyst for future results.

Yet, against this backdrop, investors should not overlook ongoing risks associated with rising catastrophe losses and reinsurance costs, especially as...

Read the full narrative on American International Group (it's free!)

American International Group's outlook anticipates $31.3 billion in revenue and $3.8 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 4.5% and a $0.5 billion increase in earnings from the current $3.3 billion.

Uncover how American International Group's forecasts yield a $88.28 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community fair value estimates for AIG range from US$88.28 to US$139.84 per share. While ongoing digitalization initiatives may boost earnings quality and efficiency, you can explore many other views on what truly drives AIG’s performance.

Explore 3 other fair value estimates on American International Group - why the stock might be worth just $88.28!

Build Your Own American International Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your American International Group research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free American International Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate American International Group's overall financial health at a glance.

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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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