Should I buy American International stock in 2025?

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At HelloSafe, our expert has been tracking the performance of American International for more than three years. Each month, hundreds of thousands of users across the United States rely on us to break down market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by American International.

What is American International?

How much is American International stock?

The price of American International stock is rising this week. AIG shares are currently trading at $83.66, reflecting a 0.85% gain over the past 24 hours and a 3.2% increase for the week.

The company holds a market capitalization of $48.56 billion, with an average three-month trading volume of about 3.9 million shares. AIG features a P/E ratio of 20.40, a dividend yield of 2.15%, and a beta of 0.64—indicating lower volatility than the broader market.

With its steady gains and attractive dividend, AIG stands out as a stable choice for investors seeking consistent performance amid market fluctuations.

Our full analysis on American International stock

Following a rigorous review of American International Group’s (AIG) latest quarterly results and an in-depth examination of its share price evolution over the past three years, our proprietary analysis—leveraging financial metrics, technical signals, sector data, and peer benchmarking—highlights several emerging strengths. This data-driven synthesis incorporates layered insights to assess how market dynamics, competitive positioning, and recent organizational advances shape the outlook for AIG. So, why might American International stock once again become a strategic entry point into the insurance and diversified financial services sector in 2025?

Recent Performance and Market Context

AIG’s stock has shown remarkable resilience and positive momentum within the past year, closing recently at $83.66—comfortably near the upper portion of its 52-week range ($69.00–$88.07). This price strength is underpinned by a series of successful operational and strategic milestones, notably a 13% year-over-year increase in net investment income and continued robust commercial premium growth. The company’s market capitalization stands at $48.56 billion, an impressive figure emphasizing both scale and sector leadership.

Throughout Q1 2025, American International weathered catastrophic events—primarily the California wildfires—demonstrating the depth of its risk management capabilities. Despite elevated claims, AIG posted net income of $698 million and adjusted after-tax income of $702 million, reflective of disciplined underwriting and stable core profitability. A crucial backdrop to this resilience has been the broad macroeconomic environment, characterized by stable interest rates and recovering global economic activity, both of which are especially favorable for the insurance sector as they support investment yields and premium growth.

Additional positive sentiment has stemmed from the company’s proactive capital management, including a $2.2 billion share repurchase program and a 12.5% hike in the quarterly dividend to $0.45/share, delivering direct value to shareholders and signaling strong confidence from management regarding future cash flow generation. Compared to its sector peers, this clear commitment to shareholder returns stands out as a core differentiator in 2025.

Technical Analysis

From a technical perspective, AIG’s price behavior suggests a consolidation phase following last year’s upward movement, with technical signals now tilting towards a potential renewal of bullish momentum:

• RSI (14): Neutral at 47.12, indicating neither overbought nor oversold conditions—providing ample room for upward moves.
• MACD: -0.10, currently delivering a buy signal as momentum appears to be shifting towards the upside.
• Moving Averages:
• Short-term (20/50-day): $81.24/$81.70—currently in consolidation, indicating recent price normalization after a period of strength.
• Medium- and Long-term (100/200-day): $77.47/$75.83—both flashing “Buy,” reaffirming the presence of a durable upward trend.

The chart structure highlights robust support just above $80, with short-term pullbacks historically met by renewed buying interest. Resistance is identified in the $85.69–$87.72 zone—should AIG decisively break this barrier, technical analysts would likely see this as the beginning of a new bullish phase. Current technical evidence, particularly the positive long-term moving averages allied with a stabilizing RSI and bullish MACD signal, collectively suggest a favorable entry point either at current levels or on minor retracements toward support.

Fundamental Analysis

AIG’s fundamentals underpin its current market appeal, amplifying the case for renewed investor interest. Core revenue drivers remain robust—net premiums written have risen 8% on a comparable basis, with North America Commercial premiums jumping 14% and International Commercial premiums up by 8%. Even amidst significant catastrophe claims, management delivered the best first-quarter accident year combined ratio since the financial crisis, affirming rigorous risk selection and claims management.

• P/E Ratio: At 20.40, in line with or below some industry peers, reflecting a market that values the stability and growth prospects of the group.
• EPS (TTM): $4.10, offering reassurance regarding earnings sustainability.
• ROE/Core Operating ROE: At 6.7% and 7.7% respectively, with management targeting a >10% Core Operating ROE for 2025, underlining continuous margin improvement and effective capital deployment.

Notably, book value per share increased 2% this quarter to $71.38, a visible sign of retained earnings growth. The debt-to-total capital ratio remains moderate at 17.1%, affording flexibility for both organic growth and opportunistic capital actions.

On valuation, AIG’s price-to-book ratio and forward earnings metrics compare favorably to its peers, particularly as the company now enjoys the benefits of organizational streamlining, expense reduction, and a global, diversified operating model.

Key structural strengths, including its global reach across 200+ jurisdictions and broad product offering, further reinforce AIG’s advantages:

• Innovation: Persistent investment in risk modeling, digital claims processing, and bespoke client solutions.
• Market Position: Entrenched relationships in commercial lines, reinforcing premium growth and margin stability.
• Brand Strength: AIG continues to be a recognized and trusted name in global insurance and financial services.

Volume and Liquidity

Sustained, above-average volume in AIG stock throughout 2025 underscores robust market confidence and engagement. Recent quarters have seen heightened institutional activity—driven in part by the increased dividend yield and continued buyback programs—leading to a dynamic and liquid float. This volume dynamic is a strong signal that the share price is both well supported and primed for efficient valuation discovery as new catalysts materialize.

Given the company’s large capitalization and high trading liquidity, investors benefit from tight bid-ask spreads and ease of entry/exit, further boosting risk-adjusted return potential and underlining AIG’s suitability for a wide array of investor profiles.

Catalysts and Positive Outlook

Several key catalysts and positive drivers position AIG for potential outperformance through 2025 and beyond:

• Continued Dividend Growth: The 12.5% increase in the dividend, marking a third consecutive year of double-digit hikes, speaks volumes about underlying earnings power and management’s confidence in sustainable growth.
• Share Repurchases: $2.2 billion in share buybacks in just the latest quarter not only accretive to EPS but also reduces outstanding float, enhancing per-share value and upside leverage.
• Operational Restructuring: The Q4 2024 realignment streamlines focus onto more profitable segments and delivers significant cost efficiencies. Operating expense targets are on track, which should provide a tailwind to margin expansion throughout 2025.
• Global Commercial Momentum: Robust premium growth, particularly in North American and International commercial markets, positions AIG as a leader in key geographies and segments primed for structural growth.
• Investment Income Upside: Elevated interest rates and portfolio optimization drove a 13% YoY uptick in net investment income, a trend likely to sustain as fixed income returns stabilize at higher levels.
• ESG and Innovation Focus: Ongoing investment in digital capabilities, streamlined policyholder services, and risk analytics bolster AIG’s competitive position while appealing to an increasingly ESG-conscious investor base.

Additionally, the favorable regulatory context, continued economic recovery in the U.S. and internationally, and rising corporate/individual demand for diversified risk solutions all serve as tailwinds for premium growth and further earnings improvement.

Investment Strategies

AIG’s current profile appears to suit a broad spectrum of investment strategies, each benefiting from distinct strengths in the current market context:

• Short-Term Entry:
• Positioning around established support ($80.04–$81.27) allows for risk-controlled entries, especially as technical signals (MACD, RSI) begin to turn constructive.
• Near-term catalysts include upcoming earnings releases, potential upward earnings revisions, and technical breakout potential above $85.69 resistance.
• Momentum traders may see opportunity in the current consolidation, expecting renewed volatility as investor sentiment brightens.
• Medium-Term Positioning:
• Over the next 1–6 months, further management updates on operational streamlining and sustained dividend growth could underpin re-rating potential.
• Positive sector trends—stable interest rates, modest economic expansion, and benign credit conditions—complement expectations for incremental earnings growth.
• Monitoring for improvements in Global Personal segment underwriting offers an additional lever for upside realization.
• Long-Term Buy-and-Hold:
• For investors seeking compounding returns, AIG’s structural enhancements, global footprint, and consistent capital return strategy provide a compelling blueprint for value creation.
• Dividend growth and share buybacks are potent levers of long-term shareholder value, especially given current payout ratios and free cash flow projections.
• The company’s steady reduction of operational expenses and focusing on high-margin business lines directly support margin expansion and intrinsic value growth over time.

Positioning just above support or accumulating on minor dips ahead of forthcoming catalysts may represent an optimal entry model, particularly as sector fundamentals and technicals continue to realign favorably.

Is it the Right Time to Buy American International?

AIG’s investment narrative for 2025 is defined by a convergence of strengths: robust commercial premium growth, an expanding and sustainable dividend, disciplined underwriting, and a resolute commitment to both capital efficiency and innovation. With technical signals stabilizing and longer-term uptrends intact, the stock appears well positioned at the intersection of value, growth, and income.

The company’s progressive operational transformation—supported by exceptional capital management and a re-energized focus on core business lines—offers ample catalysts for renewed share price appreciation. While short-term volatility remains possible (especially given ongoing macro and catastrophe risks), the underlying momentum and combination of sector tailwinds and organizational progress seem to justify a constructive—and even optimistic—outlook.

For investors evaluating the insurance and diversified financials sector, American International seems to represent an excellent opportunity. The alignment of strong fundamentals, improving operational performance, favorable technical positioning, and proactive shareholder returns establishes a robust platform for potential outperformance well into 2025 and beyond.

In summary, American International stands out as a disciplined, innovative, and capital-efficient player, and its current positioning offers a highly promising entry point for those seeking exposure to the enduring growth of the global insurance sector—making it a strategic addition worth thoughtful consideration as the new cycle unfolds.

How to buy American International stock in United States?

Buying American International Group (AIG) stock online is now both straightforward and highly secure when you use a regulated broker in the United States. Whether you prefer to own shares directly (spot buying) or to speculate on price moves without owning the asset (CFD trading), regulated platforms provide robust investor protection and fast execution. Spot buying lets you participate as an AIG shareholder, while CFDs allow for more flexibility and leverage (but with higher risk). To make the best choice, it's essential to compare broker fees and services—see our broker comparison further down the page.

Spot buying

Cash or spot buying involves purchasing AIG shares outright through a U.S.-regulated stockbroker. This means you actually become a partial owner of American International Group and are entitled to dividends and shareholder voting rights. Most online brokers in the U.S. charge a fixed commission per trade, which typically ranges from $0 to $10, depending on the platform.

Important Example

Example: If the AIG share price is $83.66, a $1,000 investment (minus an average $5 brokerage fee) allows you to buy approximately 11 shares ($995 / $83.66 ≈ 11.9 shares, rounded down to 11 full shares).

✔️ Gain scenario: If AIG’s share price rises by 10% to $92.03, your 11 shares are now worth around $1,012.33.

Result: +$100 gross gain, or +10% on your investment (excluding transaction fees and taxes).

Trading via CFD

A CFD (Contract for Difference) lets you speculate on AIG’s share price movements without actually owning the shares. CFD trading is available from regulated U.S. brokers and allows both buying (“long”) and selling (“short”) positions. You pay a spread (difference between buy and sell price), and if you hold leveraged positions overnight, overnight financing fees will also apply.

Important Example

Example: With a $1,000 deposit and 5x leverage, you gain market exposure of $5,000 on AIG shares.

✔️ Gain scenario: If AIG’s price increases by 8%, your CFD position returns 8% × 5 = 40%.

Result: That’s a $400 gain on your $1,000 investment (before fees and interest charges).

Remember: while leverage multiplies gains, it also increases the risk of significant losses.

Final advice

Before making any investment, always compare brokers’ fees, trading platforms, and support to find the best match for your needs—check our broker comparator further down this page. Your choice of method—spot buying or CFD trading—should reflect your financial goals, risk appetite, and whether you prefer ownership or speculative trading. In all cases, a well-informed approach gives you the best chance of success in the U.S. market.

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The latest news about American International

AIG’s Board of Directors approved a 12.5% increase in the quarterly dividend, continuing a multi-year trend of double-digit growth. This decision boosts the forward dividend to $1.80 per share, with the new quarterly payout of $0.45 starting in Q2 2025. This marks the third consecutive year of robust dividend increases, underlining management’s confidence in the company’s earnings power and its commitment to returning capital to shareholders. The higher dividend enhances the stock’s appeal to income-focused investors, particularly in the U.S., aligning with broader shareholder interests and supporting the stock’s valuation amid heightened volatility in the insurance sector.

AIG reported strong premium growth in its core North America and International Commercial insurance businesses for Q1 2025, strengthening the company’s operating foundation. Net premiums written in North America Commercial rose 14% year-over-year to $1.2 billion, and International Commercial saw a 5% increase to $2.0 billion. On a comparable basis, global commercial net premiums written grew by 10%. This commercial momentum signals sustained demand for AIG’s insurance solutions in the U.S. and key international markets, reinforcing its competitive positioning and underwriting discipline. Through improved pricing and risk selection, AIG’s commercial segments continue to deliver a stable and expanding revenue base.

Net investment income increased 13% year-over-year to $1.1 billion in Q1 2025, providing a robust secondary earnings stream. This performance is especially relevant in the current environment of fluctuating interest rates and financial market uncertainty in the U.S. market. The growth in investment income supports AIG’s earnings and helps mitigate volatility from underwriting results, particularly given the impact of catastrophe losses on the insurance portfolio. This stable income stream further strengthens AIG’s ability to meet its long-term obligations and strategic objectives.

AIG returned $2.5 billion to shareholders during Q1 2025 through aggressive share repurchases and elevated dividends. The company repurchased approximately 29 million shares for $2.2 billion while also distributing $234 million in dividends, reflecting disciplined and shareholder-aligned capital management. With parent liquidity at $4.9 billion as of March 31, 2025, AIG maintains financial flexibility to support ongoing operations, pursue strategic initiatives, and continue rewarding shareholders. Such capital returns are a positive signal to the U.S. market, suggesting confidence in future profitability and providing support to the stock price.

Recent restructuring of AIG’s operational segments and continued focus on cost optimization have reinforced management’s outlook for improved efficiency and profitability in 2025. Following an organizational realignment finalized in late 2024, AIG achieved its run-rate general operating expense (GOE) target at $85 million in Q1 2025, and remains on track to reach its goal of $350 million in annual expenses by the end of the year. This continuous focus on streamlining operations not only enhances profit margins but also reflects a proactive response to evolving regulatory and competitive dynamics in the U.S. insurance market, strengthening the company’s forward-looking investment appeal.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.