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American International Group (AIG) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

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Wall Street analysts forecast that American International Group (AIG - Free Report) will report quarterly earnings of $1.58 per share in its upcoming release, pointing to a year-over-year increase of 36.2%. It is anticipated that revenues will amount to $6.82 billion, exhibiting an increase of 2.7% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some American International Group metrics that Wall Street analysts commonly model and monitor.

According to the collective judgment of analysts, 'General Insurance- Net premiums earned' should come in at $5.96 billion. The estimate indicates a change of +3.7% from the prior-year quarter.

The consensus estimate for 'General Insurance- Net investment income' stands at $784.38 million. The estimate suggests a change of +5.2% year over year.

Analysts expect 'Other Operations- Net investment income and other' to come in at $88.75 million. The estimate indicates a year-over-year change of -37.1%.

Based on the collective assessment of analysts, 'Revenues- Total net investment income' should arrive at $946.23 million. The estimate suggests a change of -4.4% year over year.

It is projected by analysts that the 'General Insurance - Combined ratio' will reach 90.4%. Compared to the current estimate, the company reported 92.5% in the same quarter of the previous year.

The combined assessment of analysts suggests that 'General Insurance - Expense ratio' will likely reach 30.8%. Compared to the current estimate, the company reported 31.5% in the same quarter of the previous year.

Analysts' assessment points toward 'General Insurance - Loss ratio' reaching 59.6%. The estimate is in contrast to the year-ago figure of 61.0%.

Analysts forecast 'General Insurance- Adjusted pre-tax income' to reach $1.34 billion. Compared to the present estimate, the company reported $1.18 billion in the same quarter last year.

View all Key Company Metrics for American International Group here>>>

American International Group shares have witnessed a change of -6.7% in the past month, in contrast to the Zacks S&P 500 composite's +2.3% move. With a Zacks Rank #3 (Hold), AIG is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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