Street View: AIG's deals gives it room to play offense

Onex

05/11/2025 13:33

** Insurance company American International Group AIG.N reported higher Q3 profit on Tuesday, driven by robust underwriting performance that helped counter a decline in investment income

** On October 30, co announced investments in Convex Group, a global specialty insurer, and Onex Corporation ONEX.TO, an asset manager

** Shares up 1.1% at $81.61 premarket on thin volumes

PREMIUMS RISE, PRESSURE TOO

** J.P. Morgan ("neutral," PT: $97) expects co's EPS to grow in the near-term, supported by strong margins and buybacks, with recent deals boosting premiums despite tougher pricing

** Morgan Stanley ("equal-weight," PT: $84) says the key will be making the most of recent acquisitions and improving ROE without slowing growth, as co builds on strong operational progress heading into 2026

** Morningstar (fair value: $79) says further improvement in AIG’s ROE may be challenging as industry returns are expected to gradually revert to historical levels

** Barclays ("overweight," PT: $95) views co's business fundamentals as 'favorable'; says excess capital levels over the next couple of years should allow co to surprise to the upside on capital deployment

 (Reporting by Kanishka Ajmera in Bengaluru)

 ((Kanishka.Ajmera@thomsonreuters.com))