American International Group Review Following Q2 Results

RBC Capital analysts updated their estimates on American International Group, Inc. (NYSE:AIG) to reflect Q2 reported results, expected Q3 catastrophe losses (including its exposure to Hurricane Ian), market impacts on the Life & Retirement unit (now Corebridge), and non-controlling interest in Corebridge.

While the analysts expect alt-income investments to be a drag on Q3 results, they anticipate rising new money investment yields to mitigate some of the impacts. In all, the analysts reduced their Q3 EPS estimate to $0.32 from $1.48 to factor in revised assumptions across multiple units. Their full 2023-year Eps estimate moved to $6.25 from $6.50.

The analysts believe the company’s impressive repositioning has further room to go with favorable core margin trends continuing, its ROE on a path to improvement, and with ongoing large share buybacks. The analysts maintained their outperform rating and $68 price target on the company’s shares.