AIG Experienced Significant Decline in January, Making It a Good Investment Opportunity.
Company Recovery: American International Group (AIG) has successfully turned around its operations since facing near collapse during the 2008-09 financial crisis.
Industry Impact: The insurer's recovery reflects broader trends in the property-and-casualty insurance sector, showcasing resilience and adaptation post-crisis.
Trade with 70% Backtested Accuracy
Analyst Views on HIG
About HIG
About the author

- Core Earnings Performance: The Hartford reported core earnings of $3.8 billion for 2025, with a 19.4% ROE, where Business Insurance contributed $915 million in core earnings and a 7% growth in written premiums, reflecting strong market performance and profitability.
- Innovation Strategy Advancement: The company has adopted an

- Core Earnings Growth: The Hartford's core earnings reached $3.8 billion in 2025, translating to $13.42 per share, marking a 25% increase from 2024, indicating robust performance and enhanced profitability in the insurance market.
- Significant Net Income Increase: The company reported a net income of $3.8 billion for 2025, or $13.32 per share, a 23% rise from 2024, primarily driven by strong performance in insurance operations and increased investment income, further solidifying its financial foundation.
- Strong Insurance Business Performance: In Q4 2025, the Business Insurance segment generated a net income of $897 million, up 27% from 2024, with written premiums growing by 7%, showcasing the company's competitive edge and strong customer demand in the market.
- Increased Shareholder Returns: The Hartford returned $546 million to shareholders in Q4 2025, including $400 million in share repurchases and $146 million in dividends, reflecting the company's commitment to shareholder value and ongoing financial health.
- Earnings Announcement: The Hartford is set to announce its Q4 2023 earnings on January 29 after market close, with consensus EPS estimates at $3.22, reflecting a 9.5% year-over-year increase, indicating sustained profitability that could drive stock price appreciation.
- Revenue Growth Expectations: The revenue estimate for Q4 stands at $7.32 billion, representing a 6.2% year-over-year growth, which highlights the company's strong performance in the commercial insurance sector and may further solidify its market position.
- Historical Performance Review: Over the past two years, The Hartford has beaten EPS estimates 75% of the time and revenue estimates 50% of the time, showcasing a consistent performance that boosts investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 14 upward revisions and 3 downward revisions, while revenue estimates have had 2 upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on the company's future performance.
Impact of Winter Storm Fern: The Eastern U.S. is recovering from Winter Storm Fern, which has caused significant disruptions and damage in the region.
Insurance Sector Analysis: A UBS analyst has evaluated which property and casualty insurers may face financial challenges due to the storm's impact.

Market Performance: Stocks ended the week mostly unchanged after experiencing significant volatility, with the S&P 500 index dropping 2.1% on Tuesday, marking its largest decline since October.
Political Influence: The decline was triggered by President Trump's threats of tariffs on European countries related to his controversial interest in acquiring Greenland from Denmark.
Recovery Efforts: Following the initial drop, the stock market managed to recover most of its losses later in the week.
Trump's Remarks: The recovery was aided by Trump's speech at the World Economic Forum in Davos, where he softened his stance on the tariff threats.
- Earnings Season Begins: Apple is set to report earnings next Thursday, with expectations of growth driven by the iPhone 17 replacement cycle, potentially ending its eight-week decline and boosting investor confidence.
- Tech Stocks Under Pressure: Meta and Microsoft are down over 18% from their 52-week highs, Apple is down 13%, and Tesla nearly 10%, setting a low bar for upcoming earnings that may allow these giants to exceed market expectations.
- Small Caps Leading: The Russell 2000 index has rallied over 10% year-to-date, while the S&P 500 is up about 1%, indicating a strong performance from small caps that is further driving overall market gains.
- Federal Reserve Meeting: The upcoming Federal Reserve meeting is expected to keep interest rates steady at 3.50% to 3.75%, with investors keenly awaiting Chair Powell's comments to gauge future monetary policy direction.








