AIG's Q2 Earnings Soar 31.9% as Trading Volume Ranks 301st Marketwide Amid Margin Gains

Generated by AI AgentAinvest Market Brief
Tuesday, Aug 12, 2025 8:10 pm ET1min read
AIG--
Aime RobotAime Summary

- AIG closed at $78.48 on August 12, 2025, with Q2 revenue rising 1% to $10.05B despite a 0.76% drop in net written premiums.

- Net profit surged to $1.1B (vs. Q1's $4B loss), driven by improved underwriting margins and capital returns, per analysts.

- Keefe Bruyette cut AIG's price target to $91 but maintained an Outperform rating, citing expense ratio progress and premium growth potential.

- Analysts project 31.9% annual EPS growth to $6.45/share, though a backtested trading strategy showed $2,340 gains with -15.3% maximum drawdown risks.

On August 12, 2025, American International Group (AIG) closed at $78.48, down 0.19% with a trading volume of $360 million, ranking 301st in the market. The insurer reported Q2 2025 results, achieving $10.05 billion in revenue, a 1% increase year-over-year. Net written premiums declined slightly by 0.76% to $6.88 billion, while net profit surged to $1.1 billion, reversing a Q1 net loss of $4 billion. Analysts highlighted underwriting margin improvements and capital returns as key drivers for future performance.

Keefe Bruyette cut AIG’s price target to $91 from $97, maintaining an Outperform rating. The firm cited progress in expense ratio management and premium growth as catalysts for outperformance over the next 12 months. Meanwhile, AIG’s upcoming earnings date is slated for April 29, 2025, following a Q4 2024 EPS of $1.30, which missed estimates by $0.03. Analysts anticipate annual EPS growth from $4.89 to $6.45 per share, reflecting a 31.9% increase.

A backtested strategy of purchasing top 500 volume stocks and holding for one day yielded a $2,340 profit from 2022 to 2025. However, the approach faced a -15.3% maximum drawdown on October 27, 2022, underscoring its inherent risks despite moderate gains.

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