American International Group (NYSE:AIG) Announces Quarterly Earnings Results, Beats Estimates By $0.08 EPS

American International Group (NYSE:AIG) announced its earnings results on Friday. The insurance provider reported $2.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.92 by $0.08, Zacks reports. The business had revenue of $7.08 billion during the quarter, compared to analyst estimates of $7.25 billion. American International Group had a return on equity of 11.03% and a net margin of 11.13%.During the same period last year, the company earned $1.81 EPS.

Here are the key takeaways from American International Group’s conference call:

• Strong second-quarter performance: Adjusted after-tax income per share rose 10% year over year to $2, while underwriting income increased 10% to $686 million. Core operating ROE was 11.1% in the quarter and 11.6% for the first half.
• AIG reported 9% net premiums written growth in the quarter and 13% for the first half, supported by global commercial insurance, Accident & Health, high-net-worth business, and recent strategic transactions. Management said it remains on track for its Investor Day commitments.
• Underwriting profitability improved, with the adjusted accident-year combined ratio declining 30 basis points to 88.1%; Global Personal’s combined ratio improved 490 basis points to 91.2%. AIG also remains on track to reduce the General Insurance expense ratio below 30% for full-year 2027.
• Property-market competition is intensifying: AIG reduced Lexington property retention by nine percentage points and said pricing pressure in North American property reduced overall regional growth by more than three percentage points. International Commercial pricing declined 6%, while Global Energy pricing fell 15%.
• AIG emphasized disciplined capital deployment, balancing growth investments with shareholder returns; it repurchased $641 million of stock and paid $263 million in dividends during the quarter. Management also highlighted early benefits from AI tools that are helping underwriters review more submissions and quote faster, though broker-level analytics initiatives remain in the early stages.

American International Group Trading Down 1.5%

Shares of American International Group stock traded down $1.18 on Friday, reaching $78.80. 4,674,339 shares of the company’s stock were exchanged, compared to its average volume of 3,238,520. The company has a market capitalization of $41.78 billion, a P/E ratio of 14.40, a price-to-earnings-growth ratio of 0.73 and a beta of 0.53. American International Group has a 52 week low of $71.25 and a 52 week high of $87.29. The firm’s 50-day moving average is $77.28 and its two-hundred day moving average is $76.74. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.65 and a current ratio of 0.65.

American International Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th will be paid a $0.50 dividend. The ex-dividend date of this dividend is Wednesday, September 16th. This represents a $2.00 annualized dividend and a yield of 2.5%. American International Group’s payout ratio is 35.27%.

Key Headlines Impacting American International Group

Here are the key news stories impacting American International Group this week:

• Positive Sentiment: Second-quarter earnings exceeded expectations. AIG reported adjusted earnings of $2.00 per share, up from $1.81 a year earlier and ahead of consensus estimates ranging from $1.89 to $1.92. Strong underwriting income and lower catastrophe losses were key drivers. AIG Beats Q2 Earnings Estimates on Robust Underwriting Income
• Positive Sentiment: Premium growth was broad-based. Net premiums written increased across all three of AIG’s business lines, reinforcing management’s view that organic growth and recent strategic transactions are strengthening the company’s diversified insurance platform. AIG Q2 earnings beat as NPW grows across all three lines
• Positive Sentiment: AIG declared a quarterly dividend of $0.50 per share. The dividend is payable September 30 to shareholders of record on September 16, implying $2.00 in annualized payments and a yield of approximately 2.5% based on the referenced share price.
• Neutral Sentiment: Barclays raised its price target modestly to $81 from $80 while maintaining an “equal weight” rating. The revised target suggests limited near-term upside and does not represent a strong bullish endorsement.
• Negative Sentiment: Revenue fell short of expectations. Quarterly revenue was approximately $7.08 billion, below the $7.25 billion consensus forecast. Weaker investment income partly offset the improvement in underwriting results, giving investors a reason to temper their reaction to the earnings beat. AIG quarterly earnings report

Institutional Trading of American International Group

Several hedge funds have recently modified their holdings of AIG. Mcguire Capital Advisors Inc. acquired a new stake in American International Group in the fourth quarter worth $29,000. JPL Wealth Management LLC acquired a new stake in shares of American International Group in the 3rd quarter valued at about $39,000. Jessup Wealth Management Inc acquired a new stake in shares of American International Group in the 4th quarter valued at about $40,000. Atlas Capital Advisors Inc. bought a new stake in American International Group in the 4th quarter valued at about $50,000. Finally, DV Equities LLC bought a new stake in American International Group in the 4th quarter valued at about $65,000. Institutional investors own 90.60% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the company. BMO Capital Markets increased their price target on American International Group from $83.00 to $89.00 in a research note on Thursday, May 7th. HSBC cut their price objective on American International Group from $94.00 to $88.00 and set a “buy” rating on the stock in a research note on Monday, July 6th. Piper Sandler reissued a “neutral” rating and set a $80.00 target price (down from $88.00) on shares of American International Group in a research report on Wednesday, July 15th. Citigroup raised their price target on shares of American International Group from $85.00 to $88.00 and gave the stock a “neutral” rating in a report on Monday, May 4th. Finally, Bank of America dropped their price target on shares of American International Group from $80.00 to $79.00 and set a “neutral” rating on the stock in a research report on Tuesday, April 14th. Seven research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $88.28.

American International Group Company Profile

American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.

The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.