In a report released on February 28, Elyse Greenspan from Wells Fargo maintained a Hold rating on American International Group (AIG – Research Report), with a price target of $82.00.
Elyse Greenspan has given her Hold rating due to a combination of factors affecting American International Group (AIG). One significant reason is the movement in AIG’s casualty reserves, particularly a shift from workers’ compensation reserves initially set up in 2022 around Covid-related provisions. This movement, amounting to $150 million, was spread across multiple years, indicating a complex reserve management situation.
Additionally, while there are elevated paid-to-incurred trends in excess casualty for recent accident years, the workers’ compensation segment continues to show improvement. This positive trend in workers’ compensation could potentially counterbalance any adverse developments in liability reserves. These mixed signals in reserve trends and the potential for offsetting gains and losses contribute to the Hold rating, suggesting a cautious approach to AIG’s stock at this time.
According to TipRanks, Greenspan is a 5-star analyst with an average return of 8.4% and a 63.00% success rate. Greenspan covers the Financial sector, focusing on stocks such as Everest Group, Principal Financial, and Travelers Companies.
In another report released on February 13, Bank of America Securities also reiterated a Hold rating on the stock with a $82.00 price target.