CFRA Maintains Buy Rating for American International Group, Sees $90.00 Price Target

CFRA maintains a Buy rating for American International Group with a $90 price target. The company's recent earnings release reported a quarterly revenue of $6.77 billion and a net profit of $698 million. Insider activity shows a negative sentiment with 59 insiders selling shares. The consensus rating is Moderate Buy with an average price target of $89.75.

American International Group Inc. (AIG) reported robust second-quarter earnings for the period ending June 30, 2025, with adjusted earnings per share (EPS) of $1.81, exceeding the mean expectation of analysts by $0.21 per share [1]. This quarterly performance marks a significant improvement over the same period last year when AIG reported an EPS of $1.16. The company's revenue fell 17.8% to $5.39 billion compared to the same period last year, with analysts expecting $6.78 billion [1].

The company's net income for the quarter stood at $1.14 billion, up from $1.01 billion in the same period last year. This strong performance was driven by a combination of factors, including a 48.1% year-over-year increase in net investment income to $1.5 billion, largely due to favorable changes in the fair value of AIG's equity stake in Corebridge Financial, Inc. (CRBG) and increased income from the sale of fixed maturity securities [3].

AIG's North American Commercial segment experienced a 4% year-over-year increase in net premiums written to $2.9 billion, with underwriting income surging 58% year-over-year to $301 million. The International Commercial segment also saw a 2% year-over-year increase in net premiums written to $2.3 billion, with underwriting income advancing 30% year-over-year to $300 million. Conversely, the Global Personal segment faced a 11% year-over-year decline in net premiums written to $1.7 billion, but underwriting income increased nearly threefold to $25 million [3].

Despite these positive results, AIG's stock price has been volatile. The shares have fallen by 7.6% this quarter and gained 8.6% so far this year. Analysts have revised their earnings estimates downward in recent months, with the mean estimate falling by about 2.8% in the last three months [1]. Goldman Sachs, for instance, has lowered its price target on AIG stock to $85.00, citing pressures on the underlying loss ratio but offset by stronger net investment income [2].

CFRA maintains a Buy rating for AIG with a $90 price target, reflecting the company's strong fundamentals and consistent dividend payments. Insider activity indicates a negative sentiment, with 59 insiders selling shares, while the consensus rating is a Moderate Buy with an average price target of $89.75 [1]. The median 12-month price target for AIG is $89.00, about 11.2% above its last closing price of $79.06 [1].

References:
[1] Reuters. (2025). American International Group Inc. reports results for the quarter ended June 30. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TZ31S:0-american-international-group-inc-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[2] Investing.com. (2025). Goldman Sachs lowers AIG stock price target to $85 on business mix shift. Retrieved from https://ng.investing.com/news/analyst-ratings/goldman-sachs-lowers-aig-stock-price-target-to-85-on-business-mix-shift-93CH-2055887
[3] Nasdaq. (2025). AIG Q2 earnings beat higher North America Commercial premiums. Retrieved from https://www.nasdaq.com/articles/aig-q2-earnings-beat-higher-north-america-commercial-premiums