How did AIG's Q4 earnings surprise impact investor confidence?

**American International Group's (AIG) Q4 earnings surprise had a positive impact on investor confidence**, as evidenced by several key indicators: 1. **Earnings Beat Expectations**: AIG's Q4 earnings exceeded expectations, with the company reporting $1.23 per share, surpassing the Zacks Consensus Estimate of $1.13 per share. This marked a significant upside surprise, with a quarterly report representing an earnings surprise of 8.85%. 2. **Revenue Outperformance**: The company's revenues for the quarter ended September 2024, were $6.84 billion, surpassing the Zacks Consensus Estimate by 3.29%. This additional revenue outperformance further bolstered investor confidence in AIG's financial health and operational effectiveness. 3. **Underwriting and Investment Strength**: AIG's strong underwriting performance and higher returns on investments contributed to the earnings beat. These factors are crucial for insurers, as they indicate a solid business foundation and the ability to generate profits in a challenging environment. 4. **Market Reaction**: AIG's stock responded positively to the earnings news, reflecting investor confidence in the company's direction. Although the company has underperformed the market so far in the year, the earnings surprise helped to mitigate this concern. 5. **Future Earnings Expectations**: The positive earnings surprise sets a favorable tone for future earnings expectations. Investors are likely to be more optimistic about AIG's prospects for the upcoming quarters, especially considering the expected growth in adjusted EPS in fiscal 2025. In conclusion, AIG's Q4 earnings surprise, coupled with strong underwriting and investment performance, has likely boosted investor confidence in the company's financial health and future growth potential. This positive momentum could translate into improved stock performance and a more favorable outlook for AIG in the market.