Is American International Group Stock Underperforming the Nasdaq?

AIG +0.59% ^IXIC -0.38%

With a market cap of $41.1 billion, American International Group, Inc. (AIG) is a global insurance company serving commercial, institutional, and individual clients across North America and international markets. AIG also provides various financial services, including mortgage and commercial lending.

Companies worth more than $10 billion are generally labeled as “large-cap” stocks and AIG fits this criterion. It operates through three main segments: North America Commercial; International Commercial; and Global Personal, offering a wide range of property, casualty, specialty, and personal insurance products.

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Shares of the New York-based company have declined over 13% from its 52-week high of $88.07. AIG stock has decreased 5.8% over the past three months, lagging behind the Nasdaq Composite’s ($NASX) 8.5% increase over the same time frame.

In the longer term, the stock is up 5.2% on a YTD basis, underperforming NASX’s 20.5% gain. Moreover, shares of the insurer have dipped marginally over the past 52 weeks, compared to NASX’s 21.1% return over the same time frame.

The stock has been trading below its 50-day and 200-day moving averages since mid-October.

Despite reporting better-than-expected Q3 2025 adjusted EPS of $2.20 on Nov. 4, shares of AIG fell 5.4% the next day because GAAP earnings were much weaker at $0.93 per share and total net investment income dropped 21% to $772 million. Investors were also discouraged by soft top-line trends, as net premiums written declined 2% and results were affected by net realized losses and unrealized losses tied to AIG’s Corebridge stake.

In comparison, rival Berkshire Hathaway Inc. (BRK.B) has outpaced AIG stock. BRK.B stock has returned 12.2% on a YTD basis and 5.3% over the past 52 weeks.

Despite the stock’s underperformance, analysts remain moderately optimistic on AIG. The stock has a consensus rating of “Moderate Buy” from the 24 analysts in coverage, and the mean price target of $88.86 is a premium of nearly 16% to current levels.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com