Model Update: Caution on Growth Due to Disciplined Underwriting

研报英文原文证据摘录

Model Update: Caution on Growth Due to Disciplined Underwriting

C O M PA N Y N O T E

J u n e 2 2 , 2 0 2 6

American International Group (AIG) Overweight

CONCLUSION PRICE: US$74.02

We are in the process of our end of quarter reviews where we speak with company TARGET: US$88.00

management, review earnings call transcripts and other news in the quarter. We are Our $88 price target is based on ~10x 27E

lowering our estimate for NII from other operations due to the ending of the dividend from earnings of $8.85.

Corebridge. We also expect growth in its commercial business to be challenged in the

quarter given the company's exposure to softening businesses. Paul Newsome, CFA, CPCU

Managing Director, Piper Sandler & Co.

312 281-3445, paul.newsome@psc.com

• We are lowering our estimate for NII from other operations. Dividends from Cam Bianchi

Corebridge made up $100 million in the last two quarters but those should not continue Research Analyst, Piper Sandler & Co.

starting in 2Q26. 612 456-9841, cam.bianchi@psc.com

Changes Previous Current

• We think there is a potential for less growth in its commercial business in 2Q26. Rating — Overweight

There is probably some potential for upside in the second half of the year but we expect Price Tgt — US$88.00

growth will be challenged in 2Q26. We note that AIG has been in the news saying it will FY26E EPS US$8.10 US$8.04

resist lowering prices for its property E&S business (Lexington) in order to maintain its FY27E EPS — US$8.85

targeted returns. Market Cap. (mil) US$40,133.6

Book Value/Share US$75.82

• We are incrementally more optimistic on AIG's personal lines business. We have Tang. Book/Share $86.55

Price/Book 98% probably been underestimating the earnings power of the personal lines business and

Price/Tang.Book 86%