AIG Solidifies Focus on Core Operations with Major Divestiture

AIG Solidifies Focus on Core Operations with Major Divestiture

On May 5, 2026, American International Group (AIG) announced the sale of its remaining stake in Corebridge Financial, Inc., marking a significant milestone in its strategic realignment. This move, coupled with robust financial performance, has positively influenced AIG’s stock, which closed at $80.83 on July 28, 2026, reflecting a 1.33% increase.

Divestiture of Corebridge Financial Stake

AIG’s decision to sell approximately 25 million shares of Corebridge Financial, representing its remaining interest in the company, resulted in net proceeds of about $710 million. Peter Zaffino, AIG’s Chairman and CEO, stated that this sale concludes a five-year separation strategy, transforming AIG into a more focused global property and casualty insurance company. He emphasized that this final step reflects years of disciplined planning and execution.

Financial Performance and Analyst Outlook

In the fourth quarter of 2025, AIG reported an adjusted after-tax income (AATI) of $1.1 billion, or $1.96 per diluted common share, marking a 51% increase from the prior year. The General Insurance segment’s underwriting income rose by 48% to $670 million, with a combined ratio improvement to 88.8%. These results underscore AIG’s enhanced underwriting capabilities and operational efficiency.

Analysts have responded positively to AIG’s performance. Keefe, Bruyette & Woods (KBW) raised its price target for AIG to $97 from $96, maintaining an ‘Outperform’ rating. The firm cited expectations for faster premium growth, increased net investment income, and larger reserve releases as key factors behind the decision. KBW now forecasts AIG’s earnings per share to reach $7.95 in 2026 and $9.20 in 2027, up from previous estimates.

Market Performance

As of July 28, 2026, AIG’s stock closed at $80.83, reflecting a 1.33% increase from the previous close. The stock’s performance is bolstered by the company’s strategic initiatives and strong financial results. With a market capitalization of approximately $43.8 billion and a price-to-earnings ratio of 14.23, AIG continues to demonstrate resilience and growth potential in the competitive insurance industry.

Conclusion

AIG’s strategic divestiture of its remaining stake in Corebridge Financial, coupled with robust financial performance, has positively impacted its stock performance. The company’s focus on strengthening its core property and casualty insurance operations positions it well for sustained growth. Investors and analysts alike are optimistic about AIG’s trajectory, anticipating continued improvements in earnings and operational efficiency.