Here's Why You Should Retain American International Stock for Now

AIG's Performance and Growth Prospects - AIG currently carries a Zacks Rank 3 (Hold) and has gained 5.7% in the past year [2] - The Zacks Consensus Estimate for 2025 earnings is $6.50 per share, indicating 32.2$27.8 billion, a 3.1% rise from 2024 [4] - AIG's bottom line surpassed earnings estimates in three of the trailing four quarters, with an average surprise of 2.88% [5] AIG's Business Strengths - Revenues benefit from rate increases, new business generation, and strong retention rates in Commercial and Personal lines, driving the General Insurance segment [6] - The investment portfolio generates improved returns from alternative investments, equity, and fixed maturity securities, with plans to pursue buyouts in international markets to strengthen the personal business stream [7] - The company has undertaken divestitures to focus on core insurance business, including selling a 20% stake to Nippon Life Insurance and its global individual personal travel insurance business to Zurich Insurance Group [8] Cost Management and Technological Advancements - AIG has reduced expenses through business mix shifts, stringent cost management, and an improved premium base, enhancing operational efficiency and margins [9] - The company selected Amazon Web Services as its preferred public cloud provider to support digital transformation and enable large-scale technological advancements [9] Financial Position and Capital Deployment - AIG boasts strong liquidity with a solid cash balance and reducing debt levels, enabling prudent capital deployment via share buybacks and dividend payments [10] - The leverage ratio has improved, with total debt to total capital at 18.2%, below the industry average of 31.4% [10] Insurance Industry Comparison - CNO Financial Group, Primerica, and Cincinnati Financial are better-ranked stocks in the insurance space, with Zacks Ranks of 1 (Strong Buy) and 2 (Buy) respectively [12] - CNO Financial's earnings surpassed estimates in three of the last four quarters, with an average surprise of 24.51%, and its 2025 earnings estimate indicates a 0.6% rise [13] - Primerica's earnings beat estimates in two of the trailing four quarters, with an average surprise of 4.89%, and its 2025 earnings estimate indicates a 6% rise [14] - Cincinnati Financial's earnings outpaced estimates in three of the trailing four quarters, with an average surprise of 12.54%, and its 2025 earnings estimate indicates a 15.3% rise [15] - Shares of CNO Financial, Primerica, and Cincinnati Financial have gained 37.8%, 30.6%, and 32.5% respectively in the past year [16]