American International Group, Inc. (AIG Quick QuoteAIG - Free Report) is well-poised for growth, driven by strategic divestitures, cost-curbing efforts, technological advancements and sound cash reserves. AIG’s shares have fallen 1.4% over the past year against the industry’s growth of 4.2%.

American International — with a market capitalization of $39.9 billion — provides property casualty insurance, life insurance, retirement solutions and other financial services to customers in more than 200 countries and jurisdictions. It offers products and services that help businesses and individuals protect their assets, manage risks and provide retirement security. Its forward 12-month P/E ratio of 9.44X is higher than the industry average of 8.98X.

Courtesy of solid prospects, AIG currently carries a Zacks Rank #3 (Hold).

Where Do Estimates for AIG Stand?

The Zacks Consensus Estimate for American International’s 2025 earnings is pegged at $7.01 per share, indicating a 41.6% year-over-year rise. In the past seven days, it has witnessed one upward estimate revision against none in the opposite direction. Furthermore, the consensus mark for revenues is pegged at $27.3 billion for 2025. It beat earnings estimates in each of the past four quarters, with an average surprise of 15%. AIG carries a Value Score of B.

American International Group, Inc. Price, Consensus and EPS Surprise

American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote

AIG’s Growth Drivers

AIG is actively focusing on its growth through selective investments, partnerships and acquisitions, including strategic ties with Convex, Onex, Everest, Amwins and Blackstone. These initiatives are designed to expand scale in specialty and commercial insurance, access alternative capital and deepen distribution, while remaining disciplined, return-accretive and aligned with long-term value creation.

AIG has focused on streamlining its operations by shedding non-core businesses to focus on the General Insurance unit, reducing portfolio volatility, increasing cash liquidity and accelerating capital deployment. It plans to divest some non-core legacy private assets in the near future.

Technology stands as a crucial pillar supporting its growth. The company is accelerating the use of GenAI in underwriting and claims to enhance speed, improve decision-making and boost submission conversion rates. By partnering with Palantir, AIG is also bolstering its data and analytics capabilities, allowing for deeper insights from complex data sets.

American International's expense ratio, on a comparable basis, is improving courtesy of an alteration in business mix, ongoing expense discipline and an improved premium base. These initiatives will lead to operational efficiency and provide an extra boost to its operating margins. Total benefits, losses and expenses declined 4.2% year over year in the first nine months of 2025 on the back of lower general operating and other expenses and lower losses and loss adjustment expenses incurred. These combined efforts are setting AIG up to achieve sustainable, profitable growth through effective execution and productivity.

Also, AIG’s robust cash generation abilities have enabled it to continue elevating shareholder value through share buybacks and dividend payouts. In the first nine months of 2025, the company rewarded its shareholders with share repurchases of $5.3 billion and dividends of $734 million.

Risks for AIG Stock

There are some factors, however, that investors should keep a careful eye on.

AIG grapples with a deteriorating combined ratio within its business lines, resulting from California wildfires. In the first nine months of 2025, the International Commercial segment’s combined ratio deteriorated 70 basis points (bps) year over year, and it deteriorated 150 bps in the global personal business line. Also, the company exited the third quarter with long-term debt of $9.1 billion, higher than the cash balance of only $1.6 billion. Its ROE of 9.1% is lower than the industry average of 15.1%.

Key Picks

Some better-ranked stocks in the broader finance space are Skyward Specialty Insurance Group, Inc. (SKWD Quick QuoteSKWD - Free Report) , Hamilton Insurance Group, Ltd. (HG Quick QuoteHG - Free Report) and Trupanion, Inc. (TRUP Quick QuoteTRUP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s current-year earnings of $3.73 per share has witnessed one upward revision in the past 60 days against none in the opposite direction. Skyward Specialty Insurance Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.6%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 21.5% year-over-year growth.

The Zacks Consensus Estimate for Hamilton Insurance Group’s current-year earnings of $3.90 per share has witnessed one upward revision in the past 60 days against no movement in the opposite direction. Hamilton Insurance Group beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 289.1%. The consensus estimate for current-year revenues is pegged at $2.8 billion, calling for 20.8% year-over-year growth.

The Zacks Consensus Estimate for Trupanion’s current-year earnings is pegged at 48 cents per share and has witnessed one upward revision in the past 30 days against no movement in the opposite direction. Trupanion beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 235.4%. The consensus estimate for current-year revenues is pegged at $1.4 billion, calling for 11.9% year-over-year growth.