AIG Q4 Earnings Beat Expectations with Strong Underwriting Income
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy AIG?
Source: seekingalpha
- Earnings Performance: American International Group (AIG) reported a Q4 non-GAAP EPS of $1.96, beating expectations by $0.06, indicating strong profitability that may boost investor confidence.
- Significant Insurance Growth: The company’s general insurance underwriting income reached $670 million, up 48% year-over-year, reflecting AIG's enhanced competitiveness in the insurance market, which could aid in future market share expansion.
- Stable Underwriting Ratios: AIG's general insurance combined ratio stood at 88.8%, with an adjusted accident year combined ratio (AYCR) of 88.9%, demonstrating effective risk management and cost control, which supports sustained profitability.
- Executive Transition Impact: AIG announced the retirement of CEO Peter Zaffino, leading to a short-term decline in stock price; however, this change may provide new strategic direction for the company, influencing future business development.
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Analyst Views on AIG
Wall Street analysts forecast AIG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AIG is 85.93 USD with a low forecast of 80.00 USD and a high forecast of 96.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
2 Buy
12 Hold
0 Sell
Hold
Current: 74.900
Low
80.00
Averages
85.93
High
96.00
Current: 74.900
Low
80.00
Averages
85.93
High
96.00
About AIG
American International Group, Inc. is a global insurance company. It provides insurance solutions that help businesses and individuals in over 200 countries and jurisdictions protect their assets and manage risks through its operations, licenses and authorizations and network partners. Its segment includes General Insurance and Other Operations. General Insurance business includes its three segments, including North America Commercial, International Commercial and Global Personal. The North America Commercial consists of insurance businesses in the United States, Canada and Bermuda. The International Commercial consists of insurance businesses in Japan, the United Kingdom, Europe, Middle East and Africa, Asia Pacific, Latin America and Caribbean and China. The North America and International Commercial segment products include property and short tail, casualty, financial lines and global specialty. Global Personal segment products include global accident and health and personal lines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AIG Q4 Earnings Exceed Expectations Despite Premium Miss
- Earnings Beat: AIG reported Q4 adjusted EPS of $1.96, exceeding Wall Street's consensus of $1.90 and up from $1.30 a year ago, indicating a significant improvement in profitability.
- Investment Income Growth: The total net investment income for Q4 reached $954 million, up from $872 million last year, reflecting successful investment management and enhancing overall financial stability.
- Insurance Premiums Under Pressure: Despite the General Insurance unit's underwriting income rising 48% to $670 million, net premiums written of $6.04 billion fell short of the Visible Alpha consensus of $6.09 billion, highlighting increased market competition.
- Strong Capital Returns: Adjusted pretax income climbed to $1.42 billion from $1.08 billion a year ago, with core operating return on equity rising from 9.1% to 11.7%, demonstrating effective capital management.
See More
AIG Q4 Earnings Beat Expectations with Strong Underwriting Income
- Earnings Performance: American International Group (AIG) reported a Q4 non-GAAP EPS of $1.96, beating expectations by $0.06, indicating strong profitability that may boost investor confidence.
- Significant Insurance Growth: The company’s general insurance underwriting income reached $670 million, up 48% year-over-year, reflecting AIG's enhanced competitiveness in the insurance market, which could aid in future market share expansion.
- Stable Underwriting Ratios: AIG's general insurance combined ratio stood at 88.8%, with an adjusted accident year combined ratio (AYCR) of 88.9%, demonstrating effective risk management and cost control, which supports sustained profitability.
- Executive Transition Impact: AIG announced the retirement of CEO Peter Zaffino, leading to a short-term decline in stock price; however, this change may provide new strategic direction for the company, influencing future business development.
See More
AIG Reports Increased Adjusted Profit in Q4 Driven by Strong Underwriting Gains
- Surge in Underwriting Income: AIG's fourth-quarter underwriting income soared by 48% year-over-year to $670 million, indicating robust insurance spending amid rising macroeconomic uncertainties, which enhances the company's competitive position in the market.
- Increase in Net Investment Income: In the fourth quarter, AIG's adjusted net investment income rose by 9.4%, driven by buoyant markets following Federal Reserve rate cuts, further solidifying the company's financial foundation and profitability.
- Significant Drop in Catastrophe Charges: AIG reported catastrophe-related charges of $125 million in the fourth quarter, down from $325 million a year earlier, providing additional support to the company's financial performance and reducing potential risk exposure.
- Outstanding 2025 Performance: AIG achieved nearly 18% stock price growth in 2025, outperforming the Dow Jones U.S. Select Insurance Index, with the CEO highlighting significant progress in strategic execution that lays a solid foundation for future growth.
See More
Major Earnings Reports Expected After Tuesday's Close
- Earnings Release Companies: Major companies including Ford Motor Company (F), Gilead Sciences (GILD), Robinhood Markets (HOOD), and Cloudflare (NET) are set to report earnings after Tuesday's close, which is expected to impact the market.
- Market Focus: Investors will closely monitor these earnings reports to assess performance and future outlooks, potentially influencing stock price fluctuations and overall market sentiment.
- Additional Earnings Announcements: In addition to the major players, several other companies such as ADC, AEIS, and AIG are also scheduled to release earnings after Tuesday's close, providing further market insights.
- Earnings Season Calendar: Seeking Alpha offers a comprehensive earnings season calendar, assisting investors in tracking key earnings releases and optimizing their investment strategies.
See More
Stocks Climb Higher as Bull Market Continues
- Market Sentiment: Bulls have regained control of the market following previous concerns over artificial intelligence, leading to a positive outlook for risky assets, particularly in the tech sector.
- Ongoing Rally: The rally in real assets continues as investors anticipate a series of important economic data releases in the coming days.
See More
AIG Set to Release Q4 Earnings on February 10
- Earnings Announcement: American International Group (AIG) is set to announce its Q4 2023 earnings on February 10 after market close, with consensus EPS estimates at $1.90, reflecting a 46.2% year-over-year increase, which could positively influence investor sentiment.
- Performance Expectations: Despite AIG beating EPS estimates 88% of the time over the past two years, it has not surpassed revenue estimates, indicating challenges in revenue growth that may affect future investment decisions.
- Estimate Revision Trends: Over the last three months, EPS estimates have seen 13 upward revisions and 3 downward, while revenue estimates have only had 1 upward revision, suggesting increased market confidence in AIG's profitability but caution regarding revenue growth expectations.
- Executive Change Impact: AIG's announcement of CEO Peter Zaffino's retirement may lead to short-term stock volatility; however, the new leadership could bring strategic shifts that ultimately affect the company's market performance.
See More
AIG Q4 Earnings Exceed Expectations Despite Premium Miss
- Earnings Beat: AIG reported Q4 adjusted EPS of $1.96, exceeding Wall Street's consensus of $1.90 and up from $1.30 a year ago, indicating a significant improvement in profitability.
- Investment Income Growth: The total net investment income for Q4 reached $954 million, up from $872 million last year, reflecting successful investment management and enhancing overall financial stability.
- Insurance Premiums Under Pressure: Despite the General Insurance unit's underwriting income rising 48% to $670 million, net premiums written of $6.04 billion fell short of the Visible Alpha consensus of $6.09 billion, highlighting increased market competition.
- Strong Capital Returns: Adjusted pretax income climbed to $1.42 billion from $1.08 billion a year ago, with core operating return on equity rising from 9.1% to 11.7%, demonstrating effective capital management.
See More
AIG Q4 Earnings Beat Expectations with Strong Underwriting Income
- Earnings Performance: American International Group (AIG) reported a Q4 non-GAAP EPS of $1.96, beating expectations by $0.06, indicating strong profitability that may boost investor confidence.
- Significant Insurance Growth: The company’s general insurance underwriting income reached $670 million, up 48% year-over-year, reflecting AIG's enhanced competitiveness in the insurance market, which could aid in future market share expansion.
- Stable Underwriting Ratios: AIG's general insurance combined ratio stood at 88.8%, with an adjusted accident year combined ratio (AYCR) of 88.9%, demonstrating effective risk management and cost control, which supports sustained profitability.
- Executive Transition Impact: AIG announced the retirement of CEO Peter Zaffino, leading to a short-term decline in stock price; however, this change may provide new strategic direction for the company, influencing future business development.
See More
AIG Reports Increased Adjusted Profit in Q4 Driven by Strong Underwriting Gains
- Surge in Underwriting Income: AIG's fourth-quarter underwriting income soared by 48% year-over-year to $670 million, indicating robust insurance spending amid rising macroeconomic uncertainties, which enhances the company's competitive position in the market.
- Increase in Net Investment Income: In the fourth quarter, AIG's adjusted net investment income rose by 9.4%, driven by buoyant markets following Federal Reserve rate cuts, further solidifying the company's financial foundation and profitability.
- Significant Drop in Catastrophe Charges: AIG reported catastrophe-related charges of $125 million in the fourth quarter, down from $325 million a year earlier, providing additional support to the company's financial performance and reducing potential risk exposure.
- Outstanding 2025 Performance: AIG achieved nearly 18% stock price growth in 2025, outperforming the Dow Jones U.S. Select Insurance Index, with the CEO highlighting significant progress in strategic execution that lays a solid foundation for future growth.
See More
Major Earnings Reports Expected After Tuesday's Close
- Earnings Release Companies: Major companies including Ford Motor Company (F), Gilead Sciences (GILD), Robinhood Markets (HOOD), and Cloudflare (NET) are set to report earnings after Tuesday's close, which is expected to impact the market.
- Market Focus: Investors will closely monitor these earnings reports to assess performance and future outlooks, potentially influencing stock price fluctuations and overall market sentiment.
- Additional Earnings Announcements: In addition to the major players, several other companies such as ADC, AEIS, and AIG are also scheduled to release earnings after Tuesday's close, providing further market insights.
- Earnings Season Calendar: Seeking Alpha offers a comprehensive earnings season calendar, assisting investors in tracking key earnings releases and optimizing their investment strategies.
See More
Stocks Climb Higher as Bull Market Continues
- Market Sentiment: Bulls have regained control of the market following previous concerns over artificial intelligence, leading to a positive outlook for risky assets, particularly in the tech sector.
- Ongoing Rally: The rally in real assets continues as investors anticipate a series of important economic data releases in the coming days.
See More
AIG Set to Release Q4 Earnings on February 10
- Earnings Announcement: American International Group (AIG) is set to announce its Q4 2023 earnings on February 10 after market close, with consensus EPS estimates at $1.90, reflecting a 46.2% year-over-year increase, which could positively influence investor sentiment.
- Performance Expectations: Despite AIG beating EPS estimates 88% of the time over the past two years, it has not surpassed revenue estimates, indicating challenges in revenue growth that may affect future investment decisions.
- Estimate Revision Trends: Over the last three months, EPS estimates have seen 13 upward revisions and 3 downward, while revenue estimates have only had 1 upward revision, suggesting increased market confidence in AIG's profitability but caution regarding revenue growth expectations.
- Executive Change Impact: AIG's announcement of CEO Peter Zaffino's retirement may lead to short-term stock volatility; however, the new leadership could bring strategic shifts that ultimately affect the company's market performance.
See More
