Why Does Citi Believe AIG Is More Likely To ‘Acquire’ Than Be Acquired?

Citi analysts believe integration and revenue dyssynergies would likely overwhelm any potential cost savings from a large-scale transaction.

• According to a report, AIG’s competitor, Chubb, approached the firm with an informal offer to acquire it; however, both Chubb and AIG denied the reports.
• Citi maintained its ‘Neutral’ rating on AIG and assigned an $85 price target.
• Piper Sandler raised its price target on the stock to $95 from $88 and maintained an ‘Overweight’ rating.

American International Group (AIG) stock drew investor attention on Monday after Citi analysts noted that merging with another large insurer would not benefit AIG.

According to TheFly, Citi analysts wrote in a research note that they expect American International Group (AIG) to continue acquiring more firms rather than being acquired. Citi believes integration and revenue dyssynergies would likely overwhelm any potential cost savings from a large-scale transaction. The firm maintained a ‘Neutral’ rating on the shares, with an $85 price target.

Earlier in the month, an Insurance Insider US report indicated that Chubb had approached AIG with an informal acquisition offer. However, both firms have reportedly denied the same, according to Insurance News. 

In another note, Piper Sandler raised its price target on AIG to $95 from $88 and maintained an Overweight rating. The firm expects favorable weather to mean most insurers will report strong or even stronger-than-expected results, but pricing commentary will likely be more pessimistic.

Expansion Amidst Streamlining Operations

AIG’s CEO, Peter Zaffino, has been streamlining its operations since taking the reins in 2021 by selling its global personal travel business, and continues to make acquisitions and investments to make AIG into a more capital-aligned company.

AIG recently announced it will invest around $5 billion in specialty insurer Convex and asset manager Onex Corporation. As part of the deal, AIG acquired a 35% stake in Convex for $2.1 billion. It also said it will acquire a 9.9% ownership stake in asset manager Onex for about $646 million and will also invest up to $2 billion in its investment funds.

AIG also acquired renewal rights to Everest Group’s global retail insurance portfolio for about $2 billion, which will allow AIG to grow its general insurance arm by incorporating Everest’s existing customers.

How Did Stoctwits Users React?

Retail sentiment around AIG trended in “bearish” territory amid “high” message volumes.

Shares of AIG have surged over 10% so far in 2025.

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