AIG reported second-quarter revenue of $7.11 billion, missing analyst estimates of $7.27 billion despite 3.9% year-on-year growth. However, the insurance giant's non-GAAP earnings per share of $2 beat expectations by 3.7%. The revenue shortfall stemmed from deliberate contraction in North American property portfolios as management prioritised risk-adjusted returns amid increasing market competition. CEO Eric Andersen highlighted strong performance in accident and health products and high net worth personal lines. AIG is deploying artificial intelligence platforms to improve underwriting and claims processing whilst targeting expense ratio reductions below 30% by 2027. The company announced an acquisition of Everest Insurance's Colombia operations to expand in Latin American markets. Management maintains focus on balancing growth with profitability through disciplined underwriting and selective portfolio expansion.

American International Group (AIG) shares currently trade at $77.05, down 9% year to date despite rising 3% over the past month. The stock has delivered a 50.4% total shareholder return over three years. The most popular valuation narrative suggests AIG is 10.9% undervalued, with a fair value of $86.45. This assessment relies on the company's digitalisation and artificial intelligence initiatives across underwriting and claims, which could enhance operational efficiency and margins. AIG generated $26.7 billion in revenue and $3.2 billion in net income. However, the stock trades at 12.9 times earnings, above both the US insurance industry average of 11.3 times and its own fair ratio of 12.7 times. Key risks include climate exposure and claims inflation potentially pressuring margins.

American International Group has appointed Thomas Stoddard as an independent director, aligning with its planned CEO transition to Eric Andersen on 1 June 2026. Stoddard will serve on the Audit Committee. Stoddard brings extensive experience across insurance, asset management and investment banking, including CFO roles at Aviva and Athora, and currently serves on Prudential Financial's board. His background in capital structure, mergers and acquisitions, and reinsurance may inform AIG's decisions on capital allocation, buybacks and portfolio reshaping. The appointment strengthens board oversight ahead of the leadership change, particularly around risk management, underwriting discipline and balance sheet strength. Investors can monitor how Stoddard's influence appears in future disclosures on business mix and capital priorities as AIG navigates the transition.