American International Group
AIGBusiness Overview
ticker: AIG step: 01 generated: 2026-05-12 source: quick-research
American International Group, Inc. (AIG) — Business Overview
Business Description
American International Group is a global commercial + personal property-casualty insurer following multi-year transformation under CEO Peter Zaffino. After deconsolidating Corebridge Financial (former Life & Retirement business, fully exited May 2026), AIG has emerged as a streamlined pure-play Global General Insurance provider. Insures large complex risks: offshore oil rigs, renewable energy infrastructure, commercial aviation fleets, financial institutions, multinationals.
Revenue Model
~$26.8B FY2025 revenue from three operating segments post-Corebridge separation: North America Commercial, International Commercial, and Global Personal Insurance. Premium revenue + investment income from invested float. Technical underwriting discipline + AI/analytics-driven risk selection = combined ratio improvement. Reinsurance optimization (Q1 26 favorable renewals) reduces tail risk.
Products & Services
- North America Commercial — Property, casualty, workers' comp, marine, energy, environmental, financial lines
- International Commercial — UK, Europe, Asia, Lloyd's syndicate
- Global Personal Insurance — Private client (high-net-worth), Affinity, Travel
- Specialty — Aerospace, Cyber, Marine, Energy, Crisis Solutions
- Validus Re / Talbot — Lloyd's + reinsurance
- AIG Re — Reinsurance subsidiary (formerly Validus)
- High-Net-Worth Insurance — Private Client Group (premium home + auto + collectibles)
- AI Claim platform — Tighter underwriting + analytics
Customer Base & Go-to-Market
Sells through 50,000+ independent brokers + global broker networks (Marsh, Aon, Lockton, WTW). Global footprint: ~50% North America, ~30% International (UK/Europe/Asia), ~20% Other. Customer mix: large corporate (Fortune 500), middle-market, high-net-worth individuals, governments.
Competitive Position
Top 5 global P&C insurer + #1 in many specialty lines. Competes with Travelers (TRV), Chubb (CB), Zurich, Allianz, AXA, Berkshire's reinsurance. Differentiated by: ability to insure largest + most complex risks, global underwriting platform, Lloyd's market presence (Talbot), specialty leadership in aerospace + cyber + energy. Post-Corebridge: pure-play P&C narrative.
Key Facts
- Founded: 1919 (American Asiatic Underwriters, Shanghai)
- Headquarters: New York, NY
- Employees: ~26,000
- Exchange: NYSE (AIG)
- Sector / Industry: Financials / Insurance (P&C)
- Market Cap: ~$55B
- CEO: Peter Zaffino (since 2021)
- 2008 government bailout fully repaid 2012; Treasury exited
Financial Snapshot
ticker: AIG step: 04 generated: 2026-05-12 source: quick-research
American International Group (AIG) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25) |
|---|---|---|---|---|---|
| Revenue (GenIns) | $48.5B | $27.9B | $27.3B | $26.8B | -1.8% |
| General Ins Net Premiums | $25.7B | $24.5B | $24.1B | $24.0B | flat |
| Combined Ratio | 91.5% | 91.2% | 91.8% | 90.5% | -130bps |
| Accident Year CR (Adj) | 87.6% | 87.9% | 88.6% | 88.0% | -60bps |
| Net Investment Income | $3.9B | $3.6B | $3.7B | $4.2B | +14% |
| Net Income | $10.2B | $3.6B | $2.7B | $4.0B | +48% |
| Adjusted EPS | $5.20 | $6.18 | $4.95 | $5.85 | +18% |
Note: FY2022-23 revenue declines reflect Corebridge spin/sale (life & retirement segments removed). Q1 2026 underwriting income tripled YoY; combined ratio 87.3% (Q1 26 alone) — strong start.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$3.5B |
| Stockholders' Equity | ~$40B |
| Cash & Equivalents | ~$3.0B |
| Total Debt | ~$10B |
| Book Value per Share | ~$76 |
| Adjusted Book Value | ~$70 |
Key Ratios (approximate)
- P/E: ~14x | P/B: ~1.1x | P/Adj BV: ~1.2x
- Revenue Growth (TTM): -1.8% | Combined Ratio: 90.5%
- Dividend Yield: ~1.8% | Dividend: $1.60/share
Growth Profile
Capital return: $8.1B 2024 + $6.8B 2025 returned to shareholders ($5.8-6.6B buybacks annually + dividend). 2026 model: combined ratio mid-80s + investment income compounding + commercial pricing continued favorable. Q1 26 cat losses $180M (vs $525M Q1 25) = clean start. AI Claim platform driving expense ratio improvement.
Forward Estimates
- FY 2026: Adj EPS ~$6.40 (+9-10%); combined ratio ~88-89%
- FY 2027: Adj EPS ~$7.00 with continued buybacks + investment income compounding
- $710M Corebridge final stake sale closes May 2026 = additional capital
- Analyst price target average ~$87 vs ~$78 trading = +12% upside
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $AIG.