American International Group Stock: Is AIG Underperforming the Financial Sector?

American International Group, Inc. (AIG) is a global insurance company offering property and casualty coverage and other financial services to companies and individuals. Based in New York, AIG provides top-tier insurance products and risk management through its operations, licenses, and partner networks in several countries and territories globally. The company has a market capitalization of $39.13 billion, which classifies it as a “large-cap” stock. 

AIG’s shares reached a 52-week low of $71.25 on Jan. 23, but are up 1.8% from that level.  Over the past three months, the stock has dropped 8.2%. Contrarily, the broader State Street Financial Select Sector SPDR ETF (XLF) is down marginally over the same period. Therefore, the stock has underperformed the ETF over this period.

We have observed this underperformance over the past year as well. Over the past 52 weeks, the stock has declined by 15.2%, while the State Street Financial Select Sector has declined marginally. AIG’s shares have also dropped 15.2% year-to-date, while the sector-specific fund has declined 7.1%. AIG’s stock has been trading below its 50-day and 200-day moving averages since late May. 

The primary driver of the stock’s subdued performance was unexpected leadership turbulence. CEO Peter Zaffino announced in early January 2026 that he would step down by mid-year, catching investors off guard. Eric Anderson assumed the role of CEO this month in Zaffino’s place. 

AIG is also trying to sharpen its portfolio. Last month, the company agreed to sell its remaining stake in Corebridge Financial, Inc., resulting in net proceeds of approximately $710 million and aligning with its strategy to exit the life and retirement business. It also agreed to acquire the Everest Group Ltd.’s (EG) Colombia subsidiary to bolster its presence in the Latin American insurance industry, which is growing at a robust pace. 

We compare AIG’s performance with that of another diversified insurance stock, Arch Capital Group Ltd. (ACGL), which has dropped 8.3% over the past 52 weeks and YTD. Therefore, AIG has been the underperformer over these periods.

Wall Street analysts are moderately bullish on AIG’s stock. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering it. The mean price target of $88.41 reflects a 21.9% upside from current levels. Moreover, the Street-high price target of $101 indicates a 39.2% upside.