Does AIG’s (AIG) CEO Transition Test the Durability of Its Turnaround and Capital Return Playbook?

• American International Group (AIG) recently announced that Chairman and CEO Peter Zaffino will step down as CEO by mid-2026 to become Executive Chair, with long-time insurance executive Eric Andersen joining as President and CEO-elect on February 16, 2026, ahead of an orderly transition to the top role after June 1, 2026.
• The move caps a period in which Zaffino oversaw a turnaround featuring five consecutive years of underwriting profitability from 2021 to 2025, over US$19.00 billion returned to shareholders via buybacks and dividends, and extensive use of GenAI to modernize AIG’s underwriting and operations.
• Next, we’ll examine how Andersen’s appointment as CEO-elect and his Aon background could reshape AIG’s existing investment narrative and risk profile.

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American International Group Investment Narrative Recap

To own AIG today, you need to believe its streamlined, property and casualty focused model and underwriting discipline can keep supporting earnings and capital returns despite sector headwinds. Zaffino’s planned move to Executive Chair and Andersen’s arrival as CEO-elect do not materially alter the near term catalyst around continued underwriting profitability, but they do introduce some execution risk around preserving AIG’s transformation momentum.

The most relevant recent development here is AIG’s extensive deployment of GenAI to modernize underwriting and operations. That initiative sits at the heart of the current efficiency and margin improvement catalyst, and Andersen’s long insurance background will be watched closely for how effectively he stewards these technology and data investments during the handover.

However, while leadership succession appears orderly, investors should also be aware that AIG’s exposure to climate driven catastrophe risk could...

Read the full narrative on American International Group (it's free!)

American International Group's narrative projects $31.3 billion revenue and $3.8 billion earnings by 2028. This requires 4.5% yearly revenue growth and about a $0.5 billion earnings increase from $3.3 billion today.

Uncover how American International Group's forecasts yield a $88.28 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community range from about US$88 to over US$105,000 per share, showing just how far apart individual views can be. Against that backdrop, AIG’s reliance on ongoing digital and GenAI execution to support margins and manage risk underscores why you may want to compare multiple perspectives before deciding what its performance could look like.

Explore 6 other fair value estimates on American International Group - why the stock might be worth just $88.28!

Build Your Own American International Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your American International Group research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free American International Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate American International Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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