What Happened?
Shares of global insurance giant AIG (NYSE: AIG) fell 6.9% in the afternoon session after the company announced that its Chairman and CEO, Peter Zaffino, planned to retire as CEO by mid-year. Zaffino informed the Board of Directors of his intent to transition to the role of Executive Chair. The insurance giant revealed that Eric Andersen, an industry veteran from Aon, would join as President and CEO-elect on February 16, 2026. Andersen was expected to take over the CEO role after June 1, 2026, following a transition period. The stock's negative reaction suggested investors were not pleased with the leadership change.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy AIG? Access our full analysis report here.
What Is The Market Telling Us
AIG’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 3.3% on the news that a significantly weaker-than-expected U.S. jobs report sparked concerns about the health of the economy. According to the U.S. Bureau of Labor Statistics, non-farm payrolls increased by only 22,000 in August, a figure substantially below expectations. This disappointing data suggests a potential slowdown in economic activity. For a major insurance and financial services provider like AIG, a cooling economy can translate to lower business volumes and potential headwinds for its investment portfolio, leading to negative investor sentiment.
AIG is down 6.5% since the beginning of the year, and at $78.76 per share, it is trading 10.2% below its 52-week high of $87.72 from April 2025. Investors who bought $1,000 worth of AIG’s shares 5 years ago would now be looking at an investment worth $1,959.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report.
