AIG's Strategic Moves and Financial Performance Bolster Stock Outlook

Introduction

American International Group (AIG) has recently undertaken significant strategic initiatives and reported robust financial performance, contributing to a positive outlook for its stock.

Sale of Remaining Stake in Corebridge Financial

On May 5, 2026, AIG announced the sale of its remaining approximately 25 million shares in Corebridge Financial, Inc., generating net proceeds of about $710 million. This move marks the culmination of a five-year strategy to exit the life and retirement business, transforming AIG into a more focused global property and casualty insurance company. Peter Zaffino, AIG’s Chairman and CEO, emphasized that this step reflects years of disciplined planning and execution.

First Quarter 2026 Financial Results

AIG reported strong financial results for the first quarter of 2026, with net income per diluted share increasing by 22% year-over-year to $1.41. Adjusted after-tax income per diluted share rose by 80% to $2.11. General Insurance net premiums written grew by 24% to $5.6 billion, driven by 21% growth in Global Commercial and 11% in Global Personal lines. The combined ratio improved by 850 basis points to 87.3%, indicating enhanced underwriting profitability.

Analyst Ratings and Stock Performance

Following these developments, analysts have adjusted their outlook on AIG’s stock. Keefe, Bruyette & Woods raised its price target to $97, citing expectations for faster premium growth and net investment income. Morgan Stanley maintained an Equalweight rating with an $83 price target after AIG’s strategic collaboration with McGill and Partners to leverage agentic AI capabilities.

Conclusion

AIG’s strategic divestiture of Corebridge Financial and strong first-quarter financial performance have positively influenced its stock outlook. Analyst upgrades and strategic collaborations further bolster investor confidence, positioning AIG favorably in the financial services sector.