Why Is American International Group (AIG) Up 1% Since Last Earnings Report?

A month has gone by since the last earnings report for American International Group (AIG). Shares have added about 1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is American International Group due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for American International Group, Inc. before we dive into how investors and analysts have reacted as of late.AIG Q3 Earnings Beat on Higher International Commercial PremiumsAmerican International reported third-quarter 2025 adjusted earnings per share of $2.20, which topped the Zacks Consensus Estimate by 31%. The bottom line surged 77% year over year.Adjusted operating revenues advanced 3.2% year over year to $7.1 billion. The top line beat the consensus mark by 3%.The strong quarterly results benefited on the back of strong segmental strength in the form of improved underwriting results across the North America Commercial and International Commercial segments. A declining expense level also contributed to the upside. However, the upside was partly offset by weak Global Personal segment premiums and lower dividends received from Corebridge Financial.AIG’s Quarterly Operational UpdatePremiums came in at $6.1 billion, which grew 2.2% year over year in the quarter under review. Total net investment income declined 20.7% year over year to $772 million on the back of a favorable change in the fair value of AIG's equity stake in Corebridge. The metric missed the Zacks Consensus Estimate of $990 million. The company now has a 15.5% ownership interest in Corebridge.Total benefits, losses and expenses of $5.6 billion declined 7.6% year over year on the back of lower general operating and other expenses.Adjusted return on equity of AIG improved 470 basis points year over year to 11.6%.Segmental Performances of AIGGeneral Insurance – North America CommercialThe segment’s net premiums written were in line year over year at $2.4 billion in the third quarter, attributable to strength in Lexington and Retail Casualty, Western World and Programs.Underwriting income of $384 million soared 300% year over year on the back of a decline in catastrophe losses and more favorable prior-year development. Catastrophe-related losses, net of reinsurance, came in at $68 million. The combined ratio improved to 82.6% from a year-ago ratio of 95.5%.General Insurance – International CommercialThe segment recorded net premiums written of $2.1 billion, which increased 3% year over year on a reported basis and 1% on a comparable basis. The metric benefited from expansion in Global Specialty and Property.Underwriting income advanced 3% year over year to $330 million in the quarter under review. Catastrophe-related charges were $19 million. The combined ratio of 84.9% deteriorated 60 bps year over year as a result of lower catastrophe losses.General Insurance – Global PersonalNet premiums written totaled $1.7 billion, which tumbled 11% on a reported basis and 4% on a comparable basis. The metric was hit by an adverse impact from the U.S. High Net Worth business.Underwriting income increased nearly fourfold year over year to $79 million. Catastrophe-related charges were $13 million in the third quarter. The combined ratio of 95.2% improved 360 bps year over year on the back of lower catastrophe-related charges and an improved expense ratio.Other OperationsNet investment income and other dropped 40% year over year to $72 million in the quarter under review due to a lower dividend income received from Corebridge.Interest expenses of $100 million decreased 9% year over year on the back of a declining debt level. Adjusted pre-tax loss narrowed from $135 million in the prior-year quarter to $116 million.Financial Position of AIG (As of Sept. 30, 2025)AIG exited the third quarter with a cash balance of $1.6 billion, which climbed 22% from the 2024-end level. Total assets of $163.4 billion increased 1.3% from the figure at 2024-end.Long-term debt amounted to $9.1 billion, up 3.7% from the figure as of Dec. 31, 2024.Total shareholders’ equity slipped 3.4% from the 2024-end level to $41.1 billion. Total debt to total capital was 18% at the third-quarter end, which deteriorated 10 bps year over year.Adjusted book value per share improved 4.2% year over year to $77.04.AIG’s Capital Deployment UpdateAIG rewarded its shareholders to the tune of share repurchases of around $1.3 billion and dividends of $250 million in the third quarter.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.VGM ScoresCurrently, American International Group has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, American International Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAmerican International Group is part of the Zacks Insurance - Multi line industry. Over the past month, Markel Group (MKL), a stock from the same industry, has gained 3%. The company reported its results for the quarter ended September 2025 more than a month ago.Markel Group reported revenues of $3.93 billion in the last reported quarter, representing a year-over-year change of +6.5%. EPS of $30.90 for the same period compares with $17.34 a year ago.Markel Group is expected to post earnings of $24.23 per share for the current quarter, representing a year-over-year change of +18.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.3%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Markel Group. Also, the stock has a VGM Score of B.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG): Free Stock Analysis Report Markel Group Inc. (MKL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks