Analyst Bob Huang from Morgan Stanley maintained a Hold rating on American International Group (AIG – Research Report) and keeping the price target at $75.00.
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Bob Huang’s rating is based on a combination of factors that highlight both strengths and challenges for the American International Group. The company’s international commercial segment showed strong performance, with net written premiums increasing significantly and underwriting income surpassing expectations. This positive trend was also observed in the global personal segment, where premiums and underwriting income exceeded forecasts, aided by lower-than-expected catastrophe-related charges.
However, the North American commercial segment faced setbacks, with underwriting income falling short of predictions due to higher CAT loss estimates from recent hurricanes. This adverse outcome, along with uncertainties around prior year reserve developments, poses risks that temper the overall outlook. Additionally, while AIG’s capital position remains robust, the company’s future utilization of this capital is a critical area to monitor. These mixed factors contribute to Bob Huang’s decision to assign a Hold rating to AIG’s stock.
Huang covers the Financial sector, focusing on stocks such as Progressive, AFLAC, and Allstate. According to TipRanks, Huang has an average return of -1.5% and a 60.82% success rate on recommended stocks.