10 Most Undervalued Insurance Stocks to Buy Now

6. American International Group, Inc. (NYSE:AIG)

Forward P/E: 12.84

No. of Hedge Fund Holders: 48

American International Group, Inc. (NYSE:AIG) is a global insurance and financial services company providing property and casualty insurance, life insurance, retirement solutions, and other financial products. The company manages risk through underwriting, reinsurance, and claims management while leveraging technology and analytics to optimize operations. AIG offers insurance-related services to individuals, businesses, and companies across North America, Europe, and Asia. The company has also implemented its first generative AI solution to support business growth through automated data extraction for underwriting.

On February 14, Keefe, Bruyette & Woods analyst Meyer Shields increased the price target of AIG shares from $87 to $90, keeping an Outperform rating on the stock. The analyst is bullish on AIG because of its sustained underwriting margin progress which is expected to generate solid results for the company in 2025.

American International Group, Inc. (NYSE:AIG) posted solid results in the fourth quarter of 2024. AIG achieved net premiums written of $6.1 billion, up by 7% from a year ago, driven by 8% growth in Global Commercial Lines. The company achieved a notable combined ratio of 92.5% in 2024 while the accident combined ratio was around 88.6% throughout the year. General Insurance posted net premiums written of $23.9 billion, a 6% increase year-over-year, marking the third consecutive year of a sub-92 % combined ratio. For 2025, the company is well-positioned to achieve its target of 10% plus core ROE.