New York-based American International Group, Inc. (AIG) offers insurance products for commercial, institutional, and individual customers in North America and internationally. With a market cap of $49.8 billion, AIG operates through General Insurance, Life and Retirement, and Other Operations segments.

The insurance sector giant has lagged behind the broader market over the past year but significantly outperformed in 2025. AIG stock gained nearly 5.8% over the past 52 weeks and surged 14.1% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 10.2% gains over the past year and 3.9% dip in 2025.

Narrowing the focus, AIG has also lagged behind the iShares U.S. Insurance ETF’s (IAK) 18.6% gains over the past year and outperformed IAK’s 5.9% returns in 2025.

AIG stock prices gained 3.5% in the trading session after the release of its mixed Q1 results on May 1. The company’s net premium written came in at $4.5 billion, remaining flat compared to the year-ago quarter. Meanwhile, its total revenues inched up 30 bps year-over-year to $6.8 billion, missing the Street’s expectations. AIG’s adjusted net income for the quarter plunged 18.6% year-over-year to $702 million, but its adjusted EPS of $1.17 surpassed the consensus estimates by 11.4%. On a more positive note, the company repurchased $2.2 billion worth of shares during the quarter and raised its quarterly dividends by 12.5%, showcasing its commitment to shareholders.

For fiscal 2025, ending in December, analysts expect AIG to deliver a solid 24.2% year-over-year growth in adjusted EPS to $6.15. The company has a mixed earnings surprise history. While it has surpassed the Street’s bottom-line estimates thrice over the past four quarters, it has missed the projections on one other occasion.

AIG has a consensus “Moderate Buy” rating overall. Of the 18 analysts covering the stock, opinions include eight “Strong Buys,” two “Moderate Buys,” and eight “Holds.”

This configuration is slightly less bullish than a month ago, when nine analysts gave “Strong Buy” recommendations.

On May 2, Barclays (BCS) analyst Alex Scott maintained an “Overweight” rating on AIG, while raising the price target to $93.

AIG’s mean price target of $88.72 indicates a 6.8% premium to current price levels, while its Street-high target of $96 suggests a 15.6% upside potential.