Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
American International Group (AIG - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of -8.64% since the start of the year. The insurer is paying out a dividend of $0.50 per share at the moment, with a dividend yield of 2.56% compared to the Insurance - Multi line industry's yield of 1.79% and the S&P 500's yield of 1.33%.
Looking at dividend growth, the company's current annualized dividend of $2.00 is up 14.3% from last year. Over the last 5 years, American International Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 6.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American International Group's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AIG for this fiscal year. The Zacks Consensus Estimate for 2026 is $7.97 per share, with earnings expected to increase 12.41% from the year ago period.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, AIG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Bank of Nova Scotia boosted its position in American International Group, Inc. (NYSE:AIG – Free Report) by 494.1% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 507,662 shares of the insurance provider’s stock after purchasing an additional 422,214 shares during the quarter. Bank of Nova Scotia owned approximately 0.10% of American International Group worth $38,202,000 at the end of the most recent quarter.
Several other large investors have also recently made changes to their positions in AIG. Norges Bank bought a new position in shares of American International Group in the fourth quarter worth approximately $636,782,000. Price T Rowe Associates Inc. MD increased its position in shares of American International Group by 39.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,371,853 shares of the insurance provider’s stock valued at $1,400,613,000 after purchasing an additional 4,661,246 shares during the last quarter. Franklin Resources Inc. raised its position in American International Group by 36.9% in the fourth quarter. Franklin Resources Inc. now owns 15,618,321 shares of the insurance provider’s stock worth $1,336,147,000 after acquiring an additional 4,210,363 shares during the period. Hotchkis & Wiley Capital Management LLC raised its holdings in American International Group by 22.0% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 10,256,290 shares of the insurance provider’s stock worth $805,529,000 after purchasing an additional 1,846,979 shares during the period. Finally, Viking Global Investors LP purchased a new position in shares of American International Group during the 2nd quarter valued at about $155,413,000. 90.60% of the stock is currently owned by hedge funds and other institutional investors.
American International Group Stock Up 1.2% Shares of NYSE:AIG opened at $79.09 on Friday. The company has a market cap of $41.93 billion, a price-to-earnings ratio of 13.95, a PEG ratio of 0.72 and a beta of 0.53. American International Group, Inc. has a 12 month low of $71.25 and a 12 month high of $87.29. The company has a current ratio of 0.65, a quick ratio of 0.65 and a debt-to-equity ratio of 0.23. The company has a 50-day moving average price of $76.74 and a 200 day moving average price of $76.49.
American International Group (NYSE:AIG – Get Free Report) last issued its quarterly earnings data on Friday, May 1st. The insurance provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.89 by $0.22. American International Group had a return on equity of 10.93% and a net margin of 11.86%.The company had revenue of $6.65 billion for the quarter, compared to analysts’ expectations of $7.03 billion. During the same period in the previous year, the firm posted $1.17 earnings per share. As a group, equities research analysts predict that American International Group, Inc. will post 7.97 earnings per share for the current year.
American International Group Increases Dividend The business also recently announced a quarterly dividend, which was paid on Monday, June 29th. Stockholders of record on Monday, June 15th were given a dividend of $0.50 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $2.00 annualized dividend and a dividend yield of 2.5%. This is an increase from American International Group’s previous quarterly dividend of $0.45. American International Group’s dividend payout ratio is presently 35.27%.
Analyst Upgrades and Downgrades A number of analysts have recently issued reports on AIG shares. Piper Sandler reissued a “neutral” rating and issued a $80.00 price objective (down from $88.00) on shares of American International Group in a research note on Wednesday, July 15th. Weiss Ratings upgraded American International Group from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 2nd. Wells Fargo & Company lifted their target price on American International Group from $85.00 to $89.00 and gave the company an “equal weight” rating in a research note on Thursday, July 9th. Mizuho upped their price target on American International Group from $86.00 to $89.00 and gave the stock a “neutral” rating in a research note on Thursday, July 9th. Finally, Citigroup increased their price objective on shares of American International Group from $85.00 to $88.00 and gave the company a “neutral” rating in a report on Monday, May 4th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $88.22.
Get Our Latest Stock Report on AIG
American International Group Company Profile (Free Report)
American International Group, Inc (AIG) is a global insurance holding company that provides a broad range of property-casualty insurance, specialty insurance, and risk management solutions to institutional, commercial and individual customers. Through its operating subsidiaries, AIG underwrites commercial and personal lines products—ranging from general liability, property, and casualty coverages to specialty lines such as professional liability, surety, cyber and marine—along with related services designed to help clients manage and transfer risk.
The company also has a long history in life insurance, retirement solutions and asset management through businesses that have been restructured or separated over time.
See Also Five stocks we like better than American International Group AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding AIG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for American International Group, Inc. (NYSE:AIG – Free Report).
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The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: American International Group (AIG - Free Report) American International Group is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals protect their assets and manage risks through AIG operations, licenses and authorizations, as well as network partners. It serves clients in over 200 countries and jurisdictions, ranging from individuals and small and medium-sized businesses to multinational Fortune 500 companies.
AIG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.99; value investors should take notice.
Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $8.00 per share. AIG also boasts an average earnings surprise of +15.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AIG should be on investors' short list.
SummaryAmerican International Group (AIG) is upgraded to buy, driven by undervaluation, improving insurance metrics, and a robust investment-grade balance sheet. AIG's combined ratio and margins are improving, with the analyst consensus forecasting +12.8% YoY EPS growth and 19 upward revisions. Dividend growth and safety are meaningful, with AIG leading its peer group in 5-year dividend growth and maintaining a conservative payout ratio. Key risks remain from outsized catastrophe events, but diversified assets and liquidity position AIG as both a growth and dividend idea. Gary Yeowell/DigitalVision via Getty Images
A Major P&C Insurer With +$41B in Market Cap, With Lots More Upside Potential American International Group (AIG) is on my radar again for a followup ahead of its upcoming Q2 earnings results, and
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Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Based in New York, American International Group (AIG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -5.25%. The insurer is paying out a dividend of $0.50 per share at the moment, with a dividend yield of 2.47% compared to the Insurance - Multi line industry's yield of 1.97% and the S&P 500's yield of 1.35%.
Looking at dividend growth, the company's current annualized dividend of $2.00 is up 14.3% from last year. Over the last 5 years, American International Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 6.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American International Group's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AIG for this fiscal year. The Zacks Consensus Estimate for 2026 is $7.98 per share, with earnings expected to increase 12.55% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AIG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? American International Group (AIG - Free Report) , which belongs to the Zacks Insurance - Multi line industry, could be a great candidate to consider.
This insurer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 7.38%.
For the last reported quarter, American International Group came out with earnings of $2.11 per share versus the Zacks Consensus Estimate of $1.9 per share, representing a surprise of 11.05%. For the previous quarter, the company was expected to post earnings of $1.89 per share and it actually produced earnings of $1.96 per share, delivering a surprise of 3.70%.
Price and EPS Surprise
For American International Group, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
American International Group has an Earnings ESP of +0.93% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 6, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) today announced that Christine Williams has been named Head of Global Client and Broker Relationships, effective September 1, 2026. Ms. Williams will report to Jon Hancock, Executive Vice President and Chief Executive Officer of General Insurance, AIG. She will be based in New York. In this new role, Ms. Williams will lead AIG's enterprise-wide relationships with key global clients and distribution partners, working acros.
NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) will report financial results for the second quarter ended June 30, 2026, after the market closes on Thursday, August 6, 2026. AIG's press release and financial supplement will be available in the Investors section of AIG's website at https://www.aig.com. AIG will also host a conference call on Friday, August 7, 2026, at 8:30 a.m. ET to review these results. The live, listen-only webcast is open to the public and can be a.
NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) today announced that Nancy Bewlay has been named Executive Vice President, Global Chief Underwriting Officer, effective September 8, 2026. Ms. Bewlay will report to Eric Andersen, President & Chief Executive Officer of AIG, and join the Company's Executive Leadership Team. She will be based in New York. In this role, Ms. Bewlay will have responsibility for AIG's underwriting strategy, including advancing underwriting.
Key Takeaways AIG's transformation is driving stronger underwriting and earnings growth.AFG combines disciplined underwriting with solid capital returns.Accelerant's AI-powered, capital-light model is fueling rapid specialty insurance growth. While AI and technology remain major market themes, investors are increasingly broadening their focus to defensive sectors. Insurance stands out as an attractive option, offering stable earnings, pricing power and resilient cash flows. In an environment marked by sticky inflation, higher-for-longer interest rates, geopolitical tensions and ongoing supply chain disruptions, companies with dependable earnings have become increasingly appealing.
Where the Biggest Opportunities AreNot every insurance company is benefiting equally, however. Investors are favoring insurers with disciplined underwriting, solid pricing power, fee-based revenues and exposure to specialized markets where competition is limited. At the same time, companies with heavy catastrophe exposure or weaker investment portfolios are drawing greater scrutiny.
Insurance brokers remain one of the industry's strongest long-term stories. Unlike insurers, brokers generate commissions without assuming underwriting risk. Demand for commercial insurance, employee benefits, cyber coverage and specialty products continues to rise, while industry consolidation is creating additional growth opportunities.
The broader commercial insurance market is also holding up well, even as pricing gradually normalizes after several years of sharp increases. According to Marsh & McLennan Companies, Inc.’s (MRSH - Free Report) Global Insurance Market Index, global commercial insurance rates declined 5% in the first quarter of 2026, marking the seventh straight quarter of easing prices. Even so, many commercial lines remain profitable, particularly property insurance, where favorable reinsurance conditions and ample capacity continue to support earnings.
Specialty & Excess-and-Surplus (E&S) insurance remains one of the fastest-growing niches. Businesses increasingly need protection against cyberattacks, professional liability claims, climate-related risks and other complex exposures. These policies are harder to underwrite, allowing insurers with specialized expertise to maintain stronger pricing and healthier margins.
Technology is Becoming a Competitive EdgeTechnology investments are increasingly separating industry leaders from the rest. More insurers are using artificial intelligence to speed up claims processing, improve underwriting, detect fraud and enhance customer service. While adoption varies across the industry, companies investing in modern technology platforms could improve efficiency and profitability over time. InsurTech and AI-enabled platforms remain a long-term growth theme as insurers modernize legacy systems, though many pure-play InsurTech firms remain smaller and more volatile.
Insurance Stocks That Stand OutAgainst this backdrop, three insurance companies stand out: American International Group, Inc. (AIG - Free Report) , American Financial Group, Inc. (AFG - Free Report) and Accelerant Holdings (ARX - Free Report) . The companies carry a Zacks Rank #2 (Buy) each, combine solid earnings momentum with favorable estimate revisions and are well positioned to benefit from current industry trends. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Let’s take a closer look at these three insurers and why they stand out.
American International Group continues to benefit from its multi-year transformation, which is driving stronger underwriting performance, disciplined capital allocation and consistent shareholder returns. In first-quarter 2026, General Insurance net premiums written increased 24% year over year, underwriting income more than tripled to $774 million, and the combined ratio improved to an excellent 87.3%, reflecting underwriting discipline across commercial and personal lines.
The company also benefits from a strong balance sheet. In February 2026, it completed minority investments in Convex and Onex, which are expected to be accretive to 2026 earnings and ROE. It is also expanding its commercial footprint through an agreement to acquire Everest’s insurance operations in Colombia, with closing expected in early 2027.
Based on short-term price targets offered by 22 analysts, the Wall Street average price target for AIG stands at $88.18 per share, suggesting a 17.4% upside from current levels.
The Zacks Consensus Estimate for AIG’s 2026 earnings is pegged at $7.98 per share, indicating 12.6% year-over-year growth. The estimate witnessed eight upward revisions over the past 60 days against no movement in the opposite direction. Its 2027 earnings estimate indicates a further 10.3% increase. It beat earnings estimates in each of the past four quarters with an average surprise of 15.1%. The consensus mark for 2026 revenues is pegged at $29.18 billion, indicating 6.3% year-over-year growth, while the same for 2027 suggests a further 7% increase.
American Financial Group is well-positioned to benefit from sustained strength in the specialty property and casualty insurance market, supported by disciplined underwriting and a diversified commercial portfolio. In first-quarter 2026, net operating earnings increased 36.5% year over year, while Specialty P&C underwriting profit jumped 66%, driving an annualized return on equity of 15.8%.
The company continues to generate healthy investment income from its high-quality portfolio and maintains a shareholder-friendly capital allocation strategy. It returned $259 million through special dividends and share repurchases in the first quarter. Analysts' price targets currently range from $127 to $158, reflecting differing views on the stock's upside potential.
The Zacks Consensus Estimate for 2026 earnings is pegged at $11.37 per share, indicating a 10.5% year-over-year rise. The estimate has witnessed three upward revisions over the past 60 days against no movement in the opposite direction. Its 2027 earnings estimate suggests a further 5.2% increase. American Financial Group beat the consensus estimate for earnings in three of the past four quarters and missed once, with the average surprise being 7.3%. The consensus mark for 2026 revenues is pegged at $8.01 billion, while the same for 2027 indicates a further 8% jump.
Accelerant Holdings is capitalizing on the growing specialty insurance market through its technology-enabled risk exchange that connects managing general agents or MGAs with diversified risk capital providers. In the first quarter of 2026, Exchange Written Premium increased 16% year over year to $1.14 billion, while operating revenues climbed 57% to $273.2 million. Fee-based Adjusted EBITDA more than doubled, reflecting the company's strategic shift toward capital-light, recurring revenue streams.
Accelerant also expanded its network to 296 members and reaffirmed strong full-year growth expectations. Its proprietary data, AI-driven underwriting tools and scalable marketplace model position the company to deliver profitable, long-term growth as specialty insurance adoption continues to expand. At the end of the first quarter, total assets stood at $8.6 billion. Based on short-term price targets offered by nine analysts, the Wall Street average price target for ARX is at $19.33 per share, suggesting a 53.1% upside from current levels.
The Zacks Consensus Estimate for ARX’s 2026 earnings is pegged at 73 cents per share, which has witnessed five upward estimate revisions over the past 60 days against no movement in the opposite direction. Its 2027 earnings estimate indicates a 24.2% jump. It beat earnings estimates in each of the past four quarters, with an average surprise of 32.6%. The consensus mark for 2026 revenues is pegged at $1.09 billion, implying 19% year-over-year growth, while the same for 2027 suggests a further 9.4% increase.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: American International Group (AIG - Free Report) American International Group is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals protect their assets and manage risks through AIG operations, licenses and authorizations, as well as network partners. It serves clients in over 200 countries and jurisdictions, ranging from individuals and small and medium-sized businesses to multinational Fortune 500 companies.
AIG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. AIG has a Momentum Style Score of B, and shares are up 1.8% over the past four weeks.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.19 to $7.98 per share. AIG boasts an average earnings surprise of +15.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AIG should be on investors' short list.
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is American International Group (AIG - Free Report) . AIG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.
We should also highlight that AIG has a P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.78. Over the past year, AIG's P/B has been as high as 1.22 and as low as 0.97, with a median of 1.09.
Finally, investors will want to recognize that AIG has a P/CF ratio of 6.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.23. AIG's P/CF has been as high as 38.26 and as low as 6.49, with a median of 24.14, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that American International Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AIG feels like a great value stock at the moment.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: American International Group (AIG - Free Report) American International Group is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals protect their assets and manage risks through AIG operations, licenses and authorizations, as well as network partners. It serves clients in over 200 countries and jurisdictions, ranging from individuals and small and medium-sized businesses to multinational Fortune 500 companies.
AIG is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.41; value investors should take notice.
For fiscal 2026, eight analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.20 to $7.99 per share. AIG boasts an average earnings surprise of +15.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AIG should be on investors' short list.
Investors looking for stocks in the Insurance - Multi line sector might want to consider either American International Group (AIG - Free Report) or Axa Sa (AXAHY - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, both American International Group and Axa Sa are sporting a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that these stocks have improving earnings outlooks. But this is just one factor that value investors are interested in.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
AIG currently has a forward P/E ratio of 9.41, while AXAHY has a forward P/E of 10.35. We also note that AIG has a PEG ratio of 0.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AXAHY currently has a PEG ratio of 9.76.
Another notable valuation metric for AIG is its P/B ratio of 0.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AXAHY has a P/B of 1.95.
These are just a few of the metrics contributing to AIG's Value grade of A and AXAHY's Value grade of C.
Both AIG and AXAHY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AIG is the superior value option right now.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in New York, American International Group (AIG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -13.48%. The insurer is currently shelling out a dividend of $0.50 per share, with a dividend yield of 2.7%. This compares to the Insurance - Multi line industry's yield of 1.65% and the S&P 500's yield of 1.43%.
Looking at dividend growth, the company's current annualized dividend of $2.00 is up 14.3% from last year. Over the last 5 years, American International Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 6.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American International Group's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AIG expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $7.99 per share, representing a year-over-year earnings growth rate of 12.69%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AIG presents a compelling investment opportunity; it's not only an attractive dividend play, but the stock also boasts a strong Zacks Rank of #2 (Buy).
DUBAI, United Arab Emirates--(BUSINESS WIRE)--Pacific Prime Dubai, a leading health insurance and employee benefits brokerage, was presented with the Rising Force Award by AIG on June 9, 2026, in acknowledgement of the outstanding performance and impactful value that Pacific Prime continues to bring to its property and casualty insurance partners in the Middle Eastern market.
AIG’s Chief Distribution & Digital Officer, Sunil Bambral, presented the award to Pacific Prime Dubai’s Regional CEO, David Hayes, and Director of General Insurance, Sidharth Mohanty, during the award ceremony hosted at Pacific Prime’s administrative office in Dubai, UAE.
Other distinguished members from AIG were also in attendance, including Alexandros Nezeritis, Head of Operations and Strategic Initiatives, GCC & North Africa; Lyayla Al Azkhari, Business Development Manager; Rohan Srivastava, Senior Casualty Underwriter, and last but not least, Aneta Beliajeva, Head of Marketing & Communications, GCC & North Africa.
The award represents a major milestone, marking the third consecutive award presented by AIG, and securing Pacific Prime’s position as the only insurance broker in the UAE to receive similar awards across three consecutive years.
This distinction also reaffirms Pacific Prime’s commitment towards customizable property and casualty insurance solutions, and in fostering robust strategic partnerships with leading insurers, to deliver unbiased advice and the best coverage options for businesses worldwide.
Representing Pacific Prime, David Hayes, Regional CEO of Pacific Prime Dubai, gave the following statement of gratitude: “We’re honored to receive the Rising Force Award this year, and I am delighted to accept this award on behalf of everyone in our team. This award serves as a testament to the excellence we strive to achieve. Our partnership with AIG is greatly valued, and we expect more opportunities of success in our shared goals moving forward.”
About AIG
As a subsidiary of the American International Group (AIG), a leading global insurance organization with over 100 years of experience, AIG UAE draws on local experience in UAE and fully utilizes AIG's international presence around the world to serve over 90 million customers in over 80 countries and jurisdictions.
To learn more about AIG, please visit: https://www.aig.ae/home
About Pacific Prime
Established in 2000, Pacific Prime is an award-winning global insurance brokerage and employee benefits specialist that offers individual and corporate insurance solutions. With over USD $1 billion premium under management, Pacific Prime is the third-largest employee benefits broker in the Asia Pacific. The brokerage has over 1,000 employees and 15 offices worldwide, including Hong Kong, Singapore, China, Thailand, Malaysia, the UAE, Indonesia, the UK, the US, Mexico, the Philippines, and Australia.
To learn more about Pacific Prime, please visit: https://www.pacificprime.com/corporate
American International Group delivered a strong Q1, with EPS of $2.11, up 80% year-over-year and beating estimates by $0.23. Fears of margin compression are exaggerated; AIG's accident year combined ratio improved to 86.6%, and cost efficiencies are driving further profitability. AIG's balance sheet remains robust, supporting an 11% dividend increase, a 2.7% yield, and active share buybacks reducing share count by 9.5% year-over-year.
An AIG logo is attached to the building, in London, Britain, January 15, 2026. REUTERS/Maja Smiejkowska/File Photo Purchase Licensing Rights, opens new tab
CompaniesMay 1 (Reuters) - AIG (AIG.N), opens new tab has pared back its private credit activity amid current market conditions, the insurer's finance chief said on Friday, helping reassure investors and pushing its shares up about 5% in early trading.
Elevated default rates have put big asset managers under sharper scrutiny over their liquidity, as redemptions pick up across the industry. Investors have also grown wary of the private credit market's rapid expansion and its lack of transparency.
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Several alternative asset managers who have a strong footing in such credit markets have seen their shares take the hit in the early months of 2026.
"We've slowed our deployment in this asset class, given market conditions," CFO Keith Walsh said on a post earnings call with analysts.
The insurer posted a sharp rise in quarterly adjusted profit on Thursday, driven by strong underwriting and a steep decline in catastrophe-related losses from a year earlier when the industry was hit by claims from the Los Angeles wildfires.
Walsh also added that AIG holds all direct lending on its balance sheet and through business development companies. BDCs are publicly traded lenders to private companies and a key part of the private credit market. They offer investors higher yields, but with greater credit and liquidity risk.
Investor concerns center on whether reported net asset values fully reflect strains in parts of the private credit market. Unlike publicly traded assets, BDC portfolios are valued using fair-value estimates and internal models that can lag shifts in credit conditions, fuelling scepticism that NAVs may overstate the true value of underlying holdings.
"Our direct lending exposure is about $1.2 billion, less than 1.5% of the general insurance investment portfolio. It is a diversified portfolio of middle market loans with an average loan size of about $6 million," Walsh said.
The reassurance of the portfolio and (non)deployment decision helps the under-pressure stock of the insurer, which has seen a year-to-date decline of nearly 13%.
AIG has underperformed most of its peers so far in 2026SOFTWARE HOLDINGS AT MINIMUM"The software exposure is approximately $130 million, or just 16 basis points of the general insurance portfolio," Walsh said on the call.
Worries have also mounted over exposure to software‑heavy sectors and the risk of disruption from artificial intelligence, leading to closer scrutiny of valuation practices.
That has raised the risk that loans to small- and mid-sized companies could come under pressure.
Insurer Metlife's (MET.N), opens new tab CEO Michel Khalaf told the Semafor World Economy Summit in Washington last month that there may be some cracks in the private credit sector but not a sign that it's a bubble about to burst.
Reporting by Pritam Biswas in Bengaluru; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles., opens new tab
American International Group, Inc. (AIG - Free Report) reported first-quarter 2026 adjusted earnings per share of $2.11, which topped the Zacks Consensus Estimate of $1.90 per share. The bottom line surged 80.3% year over year.
Adjusted operating revenues advanced 5.4% year over year to $6.97 billion. The top line beat the consensus mark by 1.2%.
The strong quarterly results were driven by improved underwriting results in the North America Commercial and Global Personal segments, supported by lower catastrophe losses and reduced total losses and expenses. However, the upside was partly offset by lower investment income.
American International Group, Inc. Price, Consensus and EPS Surprise
American International Group, Inc. price-consensus-eps-surprise-chart | American International Group, Inc. Quote
AIG’s Q1 Operational UpdateNet premiums written totaled $5.6 billion, reflecting 24% year-over-year growth, driven by 21% growth in Global Commercial and 11% growth in Global Personal.
Total net investment income declined 36% year over year to $712 million, which missed the consensus mark by 29.7%. The decrease was primarily due to changes in the fair value of its investments in Corebridge and equity securities, partly offset by higher income from available-for-sale fixed maturity securities. AIG holds a 5.6% stake in Corebridge.
Total benefits, losses and expenses amounted to $5.7 billion, down 2.7% year over year, mainly due to lower losses and loss adjustment expenses incurred.
Adjusted return on equity improved 450 basis points year over year to 10.9%, reflecting enhanced profitability and capital efficiency.
Underwriting income for the General Insurance segment rose to $774 million, reflecting a more than threefold increase over the previous year. This result significantly outperformed the Zacks Consensus Estimate by 33.9%. The segment’s combined ratio improved 850 basis points to 87.3%, reflecting significantly stronger underwriting performance compared with the prior-year quarter.
Segmental Performances of AIGGeneral Insurance – North America CommercialThe segment’s net premiums written increased 37% year over year to $1.6 billion in the first quarter. The uptick was driven by a combination of organic growth in high-priority areas, key renewals from the Everest Group partnership, and optimized reinsurance program changes.
Underwriting income surged 153% year over year to $327 million. This increase was mainly driven by lower catastrophe-related losses and higher favorable prior-year development. The combined ratio improved 840 basis points to 85.5%, reflecting significantly stronger underwriting performance year over year.
General Insurance – International CommercialThe segment reported net premiums written of $2.5 billion, up 21% year over year. The growth was mainly due to the Convex Group quota share, Everest renewals, and changes in reinsurance programs.
Underwriting income increased 16% year over year to $278 million in the quarter and beat the Zacks Consensus Estimate by 2.2%. The combined ratio improved 90 basis points to 87.3%. This was mainly due to lower catastrophe losses, reduced operating expenses, and favorable prior-year reserve development. This was partly offset by prior-year premiums.
General Insurance – Global PersonalNet premiums written totaled $1.5 billion, which improved 17% year over year. The increase was mainly driven by reinsurance program changes and growth in the U.S. High Net Worth and Accident and Health businesses.
Underwriting income rose to $169 million compared to a loss of $126 million last year. The combined ratio improved 1,850 basis points to 89.4%. This was driven by favorable prior-year reserve development and reduced catastrophe losses.
Other OperationsNet investment income and other fell 51% year over year to $54 million. This was mainly due to lower parent liquidity and reduced dividends from Corebridge, reflecting a smaller ownership stake. Interest expense rose 10% to $100 million, caused by new debt issued in 2025, partly offset by interest savings from debt repurchases.
Adjusted pre-tax loss widened 89% year over year to $125 million.
Financial Position of AIG (As of March 31, 2026)AIG ended the first quarter with a cash balance of $1.5 billion compared with $1.3 billion at the end of 2025. Total assets were $161.5 billion, slightly higher than $161.3 billion at the end of 2025.
Long-term debt totaled $9 billion in the first quarter of 2026, which remained unchanged from year-end 2025. Total shareholders’ equity fell to $40.4 billion from $41.2 billion at year-end 2025.
Adjusted book value per share improved to $78.55 from $74.45 in the prior-year quarter.
AIG’s Capital Deployment UpdateAIG returned capital to its shareholders through approximately $519 million in share repurchases and $241 million in dividends during the first quarter of 2026.
The company announced a cash dividend of 50 cents per common share, representing an 11% increase over the previous quarterly payout.
American International’s Zacks RankAIG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other InsurersCompanies belonging to the broader Finance space, such as Arch Capital Group Ltd. (ACGL - Free Report) , AXIS Capital Holdings Limited (AXS - Free Report) and Selective Insurance Group (SIGI - Free Report) , have also posted their quarterly results. Here’s how they have performed:
Arch Capital reported first-quarter 2026 operating income of $2.50 per share, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 15.4% year over year.
ACGL’s operating revenues of $4.3 billion decreased 3.8% year over year due to lower net premiums earned. Revenues missed the Zacks Consensus Estimate by 6.1%. Net premiums earned declined 4.8% to $3.9 billion, due to lower premiums earned in its Reinsurance segment. The figure missed the Zacks Consensus Estimate by 6%.
AXIS Capital reported first-quarter 2026 operating income of $3.42 per share, which outpaced the Zacks Consensus Estimate of $3.23 and rose 7.9% year over year.
Total operating revenues of $1.7 billion marginally beat the Zacks Consensus Estimate by 0.4%. The top line rose nearly 7.7% year over year on higher premiums earned. AXS’s quarterly results benefited from higher net premiums earned and stronger underwriting income, partly offset by lower net investment income and higher expenses.
Selective Insurance reported first-quarter 2026 operating income of $1.69 per share, which missed the Zacks Consensus Estimate by 2.3%. The bottom line decreased 11% year over year.
SIGI’s operating revenues of $1.4 billion increased 6.4% from the year-ago quarter’s level, driven primarily by higher net premiums earned and net investment income. However, the top line missed the Zacks Consensus Estimate by 0.5%. Net premiums written decreased 1% to $1.3 billion. The figure matched our estimate.
At midday, the S&P 500 (^GSPC +0.50%) rose 0.64% to 7,254.82, the Nasdaq Composite (^IXIC +0.31%) gained 1.07% to 25,163.49, and the Dow Jones Industrial Average (^DJI +0.70%) added 0.04% to 49,668.01 as indexes extended April’s record‑setting momentum.
Market moversApple (AAPL 1.52%) jumped after topping Q2 estimates and issuing upbeat commentary, powering fresh highs for tech benchmarks. Moderna (MRNA +0.54%) slipped on mixed earnings, while AIG (AIG +0.56%) gained after beating analyst expectations. Gaming platform Roblox (RBLX 0.41%) tumbled 17% on a revenue miss. It slashed its full-year forecast as child-protection safeguards impact its user numbers.
What this means for investorsMarkets continued to rise this morning, largely driven by resilience in tech stocks. April was the best month for the S&P 500 and Nasdaq since 2020, as strong earnings and optimism about artificial intelligence (AI) outweighed concerns about elevated oil prices and the conflict in Iran.
However, several commentators are sounding the alarm. Last week, the Bank of England deputy governor said markets were overly complacent about current risk levels. Today, Moody's top economist, Mark Zandi, said valuations could be diverging from economic reality.
As oil prices continue to rise due to ongoing restrictions in the Strait of Hormuz, investors are trying to evaluate the degree to which the disruption is bleeding into the wider economy. In that context, yesterday’s news that U.S. GDP had grown by 2.0% signalled expansion despite inflationary and conflict pressures. Consumer spending slowed, but remained solid. Investors can expect further sector-specific volatility and uncertainty as market rallies continue to defy commentators’ caution.
Emma Newbery has positions in Apple. The Motley Fool has positions in and recommends Apple, Moderna, and Roblox. The Motley Fool has a disclosure policy.
American International Group Inc (AIG) Q1 2026 Earnings Call Highlights: Strong Growth and Strategic Advancements AIG reports robust premium growth and significant improvements in financial metrics, driven by AI integration and strategic initiatives.
Net Premiums Written: Increased 18% year-over-year on a constant dollar basis.Global Commercial Insurance Growth: Increased 21% year-over-year.Global Personal Insurance Growth: Increased 11% year-over-year.Expense Ratio: Improved to 29.3%, a decrease of 120 basis points year-over-year.Accident Year Combined Ratio (Adjusted): Improved to 86.6%, a 120 basis point improvement year-over-year.Calendar Year Combined Ratio: Improved to 87.3%, an 850 basis point improvement year-over-year.Adjusted After-Tax Income per Diluted Share: $2.11, an increase of 80% year-over-year.Core Operating ROE: 12.2%.Capital Returned to Shareholders: $760 million, including $519 million in share repurchases and $241 million in dividends.Quarterly Dividend Increase: 11% increase to $0.50 per share starting in Q2 2026.Total Debt to Total Adjusted Capital Ratio: 17.7% at quarter end.Adjusted Pretax Income: $1.5 billion, a 65% increase from the prior year quarter.Underwriting Income: More than tripled to $774 million year-over-year.General Insurance Gross Premiums Written: $10 billion, a 7% increase year-over-year.Net Premiums Earned: $6.1 billion, up 5% year-over-year.Catastrophe Losses: Approximately $180 million for the quarter.Favorable Prior Year Development: $132 million net of reinsurance and prior year premium.General Insurance Net Investment Income: $864 million, up 17% year-over-year.Annualized Yield: 4.61%, a 51 basis point improvement over the prior year quarter.Book Value per Share: $75.82, up 6% from the prior year quarter.Adjusted Tangible Book Value per Share: $70.85, up 4% from the prior year quarter.Release Date: May 01, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points American International Group Inc AIG reported an 18% year-over-year increase in General Insurance net premiums written, driven by strong growth in both Global Commercial and Global Personal Insurance businesses.The company achieved an adjusted after-tax income per diluted share of $2.11, marking an 80% increase year-over-year.AIG's expense ratio improved by 120 basis points year-over-year to 29.3%, reflecting increased operating leverage and expense discipline.The company returned $760 million of capital to shareholders during the quarter, including $519 million in share repurchases and $241 million in dividends.AIG's AI and digital strategies have shown promising results, with AI implementation in underwriting leading to a 30% improvement in quoting more submissions and a 40% increase in binding submissions. Negative Points The ongoing conflict in the Middle East poses a risk to AIG's operations, although the direct impact has not been material so far.The US property market remains highly competitive, with pricing pressure affecting the Lexington large account shared and layered business.AIG's International Commercial accident year combined ratio as adjusted showed only a modest improvement of 30 basis points.The company's private equity returns were below long-term expectations, yielding only 1.6% in the quarter.AIG's direct lending exposure, although diversified, remains a concern given the current market conditions, with a total exposure of $1.2 billion. Q & A Highlights Q: How does the adoption of AI by leading carriers and brokers impact what carriers pay to brokers?
A: Peter Zaffino, CEO, explained that AI will enhance efficiency in data exchange and underwriting decisions. Brokers provide significant advisory services, and AI will augment information processing, benefiting both underwriters and brokers. The collaboration between large insurance companies and brokers will strengthen with AI advancements.
Q: What is the impact of pricing on the Everest business, and how is AIG's current pricing affecting gross premium volumes from Everest?
A: Peter Zaffino noted that AIG has been closely working with Everest on portfolio conversion, bringing in employees from Everest to AIG. The conversion has been successful, with strong broker and client support. Jon Hancock added that the retention and conversion rates are strong, and the portfolio is performing as expected, with strategic repricing and restructuring where necessary.
Q: What are your thoughts on the competitive environment in the E&S property and casualty markets, and how might it affect AIG's growth and margins?
A: Peter Zaffino highlighted that the E&S property market is competitive, leading to potential portfolio contraction. However, the middle market property segment is performing well, with significant submission opportunities. AI implementation will help manage submission flow and identify growth opportunities. The casualty market is under pressure, but returns remain favorable.
Q: How do you plan to deploy AIG's excess capital, and what are your thoughts on M&A and increasing operating leverage?
A: Eric Andersen, CEO-Elect, emphasized focusing on organic growth, executing recent transactions, and evolving offerings to meet client needs. Peter Zaffino added that AIG's strong capital position provides optionality for strategic opportunities, and the company aims to maintain flexibility to capitalize on market complexities.
Q: How do you envision AI integration impacting AIG's global underwriting capabilities in the future?
A: Peter Zaffino stated that AI will significantly enhance global capabilities in underwriting and other functions over the next five years. The integration of AI will improve decision-making and efficiency, with large companies benefiting from size and scale. However, regional differences, such as data regulations in Europe, will influence AI deployment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
American International Group (AIG - Free Report) is headquartered in New York, and is in the Finance sector. The stock has seen a price change of -7.93% since the start of the year. The insurer is paying out a dividend of $0.45 per share at the moment, with a dividend yield of 2.29% compared to the Insurance - Multi line industry's yield of 1.82% and the S&P 500's yield of 1.39%.
Looking at dividend growth, the company's current annualized dividend of $1.80 is up 2.9% from last year. Over the last 5 years, American International Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 6.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American International Group's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, AIG expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $7.75 per share, representing a year-over-year earnings growth rate of 9.31%.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AIG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Diamond Hill Capital's Strategic Moves: A Closer Look at Microsoft Corp's 399.84% Increase Insightful Analysis of Diamond Hill Capital (Trades, Portfolio)'s First Quarter 2026 13F Filing Diamond Hill Capital (Trades, Portfolio) recently submitted its 13F filing for the first quarter of 2026, offering a glimpse into its strategic investment decisions. Founded in 2000, Diamond Hill Capital (Trades, Portfolio) Management, Inc. is a registered investment adviser headquartered in Columbus, Ohio. The firm is independent and publicly traded on NASDAQ under the ticker symbol DHIL, and is part of the Russell 2000 Index. Diamond Hill manages a diverse range of equity strategies, including traditional and alternative options, available through various investment vehicles such as separately managed accounts, mutual funds, and private investment funds. The firm serves a wide array of clients, including institutions, financial intermediaries, and individuals. Diamond Hill's investment approach is primarily bottom-up, focusing on fundamental analysis of a company's profitability, market position, and management quality, among other factors. The firm also considers industry dynamics and regulatory environments in its top-down analysis, eschewing macroeconomic factors. This comprehensive approach helps narrow down investable ideas for deeper analysis and financial modeling.
Key Position Increases Diamond Hill Capital (Trades, Portfolio) also increased stakes in a total of 51 stocks, among them:
The most notable increase was in Microsoft Corp MSFT , with an additional 818,912 shares, bringing the total to 1,023,723 shares. This adjustment represents a significant 399.84% increase in share count, a 1.9% impact on the current portfolio, and a total value of $378,951,540. The second largest increase was in Equitable Holdings Inc EQH , with an additional 2,897,402 shares, bringing the total to 7,192,046. This adjustment represents a significant 67.47% increase in share count, with a total value of $266,896,830. Summary of Sold Out Diamond Hill Capital (Trades, Portfolio) completely exited 16 holdings in the first quarter of 2026, as detailed below:
International Paper Co IP : Diamond Hill Capital (Trades, Portfolio) sold all 5,453,523 shares, resulting in a -1.1% impact on the portfolio. Progress Software Corp PRGS : Diamond Hill Capital (Trades, Portfolio) liquidated all 495,346 shares, causing a -0.11% impact on the portfolio. Key Position Reduces Diamond Hill Capital (Trades, Portfolio) also reduced positions in 115 stocks. The most significant changes include:
Reduced Texas Instruments Inc TXN by 1,178,209 shares, resulting in a -36.54% decrease in shares and a -1.05% impact on the portfolio. The stock traded at an average price of $202.46 during the quarter and has returned 29.46% over the past 3 months and 66.32% year-to-date. Reduced American International Group Inc AIG by 2,240,801 shares, resulting in a -20.71% reduction in shares and a -0.98% impact on the portfolio. The stock traded at an average price of $76.5 during the quarter and has returned 0.18% over the past 3 months and -10.16% year-to-date. Portfolio Overview At the end of the first quarter of 2026, Diamond Hill Capital (Trades, Portfolio)'s portfolio included 187 stocks. The top holdings included 4.04% in American International Group Inc (AIG), 3.81% in Berkshire Hathaway Inc BRK.B , 3.45% in Abbott Laboratories ABT , 3% in Aon PLC AON , and 2.88% in Colgate-Palmolive Co CL .
The holdings are mainly concentrated in all 11 industries: Financial Services, Industrials, Healthcare, Technology, Consumer Defensive, Energy, Consumer Cyclical, Real Estate, Communication Services, Basic Materials, and Utilities.
Also check out:
Diamond Hill Capital Undervalued Stocks Diamond Hill Capital Top Growth Companies Diamond Hill Capital High Yield stocks, and Stocks that Diamond Hill Capital keeps buyingThis stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
NEW YORK--(BUSINESS WIRE)--American International Group, Inc. (NYSE: AIG) today announced that Thomas (Tom) Stoddard has been elected to its Board of Directors as an independent Director, effective June 1, 2026. With more than 35 years of senior leadership experience in the financial services sector across insurance, asset management and investment banking, Mr. Stoddard is a former Vice Chairman of Global Investment Banking at Bank of America.
Peter Zaffino, Chairman & Chief Executive Officer, AIG, said, “Tom’s deep expertise in property and casualty insurance and capital markets, together with his longstanding knowledge of AIG will be a very strong asset to our Board as we continue executing AIG’s strategic priorities and building on AIG’s momentum for the long term.”
Prior to Bank of America, Mr. Stoddard served as Group Chief Financial Officer of Aviva plc, a British multinational insurance company. He subsequently held the role of Group Chief Financial Officer at Athora Ltd., a European life insurance company founded by Apollo Global Management. Previously, Mr. Stoddard worked on deals and financing transactions at firms including Blackstone, where he was Senior Managing Director and Head of the Global Financial Institutions Group, and advised AIG among other global financial institutions.
“Tom is a highly accomplished finance executive whose extensive background across financial services and the global insurance industry make him an excellent addition to the AIG Board of Directors,” said John Rice, Lead Independent Director, AIG. “We look forward to leveraging his deep expertise in corporate governance and across the financial sector as we support AIG’s focus on delivering sustainable, long-term value for shareholders."
Mr. Stoddard added: “Having worked very closely with AIG in the past, I am deeply honored to join the AIG Board of Directors and eager to contribute to the company’s continued success. The impressive work that led to AIG’s incredible transformation and the company’s positioning as a global market leader with a strong track record of outstanding performance is a compelling vision for the future that I look forward to supporting.”
Earlier in his career, Mr. Stoddard co-founded and served as managing partner at Barrett Ellman Stoddard Capital Partners, a private equity investment and advisory firm, and spent more than a decade in investment banking covering financial institutions at UBS, Credit Suisse and Donaldson, Lufkin & Jenrette. He began his career as a corporate lawyer with Cravath, Swaine & Moore.
Mr. Stoddard serves on the Board of Directors of Prudential Financial, Inc. He holds a bachelor’s degree in economics from Swarthmore College, where he was a McCabe Scholar, and a JD from the University of Chicago Law School.
About AIG
American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in more than 200 countries and jurisdictions protect their assets and manage risks through AIG operations, licenses and authorizations as well as network partners. For additional information, visit www.aig.com. This website with additional information about AIG has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide operations of American International Group, Inc. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
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Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: American International Group (AIG - Free Report) American International Group is a leading global insurance organization. Building on its long history, it provides a wide range of property casualty insurance, life insurance, retirement solutions, and other financial services to customers in more than 80 countries and jurisdictions.
AIG is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 9.52; value investors should take notice.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.14 to $7.95 per share. AIG boasts an average earnings surprise of +15.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, AIG should be on investors' short list.
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.
Headquartered in New York, American International Group (AIG - Free Report) is a Finance stock that has seen a price change of -9.37% so far this year. Currently paying a dividend of $0.45 per share, the company has a dividend yield of 2.32%. In comparison, the Insurance - Multi line industry's yield is 1.68%, while the S&P 500's yield is 1.45%.
Looking at dividend growth, the company's current annualized dividend of $1.80 is up 2.9% from last year. Over the last 5 years, American International Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 6.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American International Group's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
AIG is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $7.95 per share, which represents a year-over-year growth rate of 12.13%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, AIG is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is American International Group (AIG - Free Report) . AIG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is AIG's P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.60. Over the past year, AIG's P/B has been as high as 1.22 and as low as 0.97, with a median of 1.09.
Finally, our model also underscores that AIG has a P/CF ratio of 6.55. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.98. AIG's P/CF has been as high as 38.26 and as low as 6.49, with a median of 24.14, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that American International Group is likely undervalued currently. And when considering the strength of its earnings outlook, AIG sticks out as one of the market's strongest value stocks.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in New York, American International Group (AIG - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of -14.16%. The insurer is currently shelling out a dividend of $0.45 per share, with a dividend yield of 2.45%. This compares to the Insurance - Multi line industry's yield of 1.46% and the S&P 500's yield of 1.44%.
Looking at dividend growth, the company's current annualized dividend of $1.80 is up 2.9% from last year. Over the last 5 years, American International Group has increased its dividend 3 times on a year-over-year basis for an average annual increase of 6.78%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. American International Group's current payout ratio is 22%, meaning it paid out 22% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for AIG for this fiscal year. The Zacks Consensus Estimate for 2026 is $7.99 per share, with earnings expected to increase 12.69% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. That said, they can take comfort from the fact that AIG is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is American International Group (AIG - Free Report) . AIG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is AIG's P/B ratio of 1.07. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.51. AIG's P/B has been as high as 1.22 and as low as 0.97, with a median of 1.09, over the past year.
Finally, investors will want to recognize that AIG has a P/CF ratio of 6.55. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.74. AIG's P/CF has been as high as 38.26 and as low as 6.49, with a median of 24.14, all within the past year.
These are only a few of the key metrics included in American International Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AIG looks like an impressive value stock at the moment.
Key Takeaways AIG's Q1 2026 underwriting income more than tripled to $774M as the combined ratio improved.AIG exited non-core businesses and completed its Corebridge stake sale to sharpen focus.AIG returned about $760M to shareholders and raised its dividend 11% in April 2026. American International Group, Inc. (AIG - Free Report) is a leading global property and casualty insurer that provides insurance and risk-management solutions to businesses and individuals in more than 200 countries and jurisdictions.
The company is well positioned for growth, supported by strategic portfolio optimization, expense-reduction initiatives, technology investments and a strong capital position. Despite these strengths, AIG shares have lost 12.7% over the past six months, underperforming the industry's 5.9% decline.
From a valuation standpoint, AIG is trading below its own historical levels. The stock currently carries a forward 12-month P/E of 9.02X, which is below its five-year median of 10.16X. However, it remains above the industry average of 8.8X, indicating that investors still have confidence in the company's long-term growth prospects despite the recent share price decline.
Courtesy of solid prospects, AIG currently carries a Zacks Rank #2 (Buy).
Where Do Estimates for AIG Stand?The Zacks Consensus Estimate for American International’s 2026 earnings is pegged at $7.99 per share, indicating a 12.7% year-over-year rise. In the past 60 days, it has witnessed eight upward estimate revisions against none in the opposite direction.
The consensus mark for 2026 revenues is pegged at $29.16 billion, indicating a 6.2% year-over-year increase. It beat earnings estimates in each of the past four quarters, with an average surprise of 15.1%. AIG carries a Value Score of A.
American International Group, Inc. Price, Consensus and EPS SurpriseAIG’s Growth DriversDespite the recent decline in its share price, AIG has continued to deliver improvements across its core business. Below are the key factors supporting its ongoing turnaround.
The turnaround is being fueled by stronger underwriting results. In the first quarter of 2026, General Insurance underwriting income more than tripled year over year to $774 million, while the combined ratio improved 850 basis points to 87.3%. Net premiums written increased 24%, driven by growth across commercial and personal insurance businesses. Lower catastrophe losses and disciplined underwriting continue to support profitability.
Over the past few years, management has simplified the business and sharpened its focus on property and casualty insurance. The insurer exited several non-core operations, including Crop Risk Services. Validus Re and its travel insurance business. It also completed its exit from the life and retirement business through the sale of its remaining stake in Corebridge. These moves are reducing complexity, improving liquidity and freeing up capital for higher-return opportunities.
Ongoing cost-control efforts are helping improve operating efficiency. The General Insurance expense ratio improved 120 basis points year over year to 29.3% in the first quarter of 2026, keeping the insurer on track to achieve its target of reducing the ratio below 30% by 2027. The AIG Next program has generated annual run-rate savings of $500 million, supporting margin expansion.
Solid cash generation continues to support both growth initiatives and shareholder returns. During the first quarter of 2026, approximately $760 million was returned to shareholders through dividends and share repurchases. In April 2026, the quarterly dividend was raised by 11%, marking the fourth consecutive year of double-digit dividend growth and reinforcing management's commitment to disciplined capital allocation.
Risks for AIG StockWhile the company's fundamentals are improving, investors should keep an eye on a few risks.
AIG remains exposed to large catastrophe events that could pressure future earnings. Significant weather-related claims may increase earnings volatility and weigh on underwriting profitability. The company also ended the first quarter of 2026 with $9 billion in long-term debt, significantly higher than its cash balance of $1.5 billion. Adjusted ROE of 10.9% remained below the industry average of 16.2%, suggesting there is still room for improvement in capital efficiency.
Other Key PicksSome other top-ranked stocks in the broader Finance space are First American Financial Corporation (FAF - Free Report) , The Hanover Insurance Group, Inc. (THG - Free Report) and United Fire Group, Inc. (UFCS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for First American’s 2026 earnings is pegged at $6.81 per share, indicating 12.6% year-over-year growth. FAF beat earnings estimates in each of the trailing four quarters, with the average surprise being 22%. The consensus estimate for 2026 revenues is pinned at $8.03 billion, implying 7.8% year-over-year growth.
The Zacks Consensus Estimate for The Hanover Insurance’s 2026 earnings is pegged at $18.36 per share, which has witnessed one upward revision in the past 30 days, with no movement in the opposite direction. THG beat earnings estimates in each of the trailing four quarters, with the average surprise being 28.5%. The consensus estimate for 2026 revenues is pinned at $6.95 billion, implying 4.7% year-over-year growth.
The Zacks Consensus Estimate for United Fire’s 2026 earnings is pegged at $4.69 per share, indicating 2% year-over-year growth. UFCS beat earnings estimates in each of the trailing four quarters, with the average surprise being 68.8%. The consensus estimate for 2026 revenues is pinned at $1.53 billion, implying 10.5% year-over-year growth.
