Exploring American International Group, Inc. (AIG) Investor Profile: Who’s Buying and Why?

You're looking at American International Group, Inc. (AIG) and asking the right question: who is buying this stock, and what's their real thesis after years of restructuring? The picture is clear: the smart money is betting on a leaner, underwriting-focused insurer, not the old conglomerate, which is why institutions like Vanguard Group Inc. and BlackRock, Inc. collectively own around 73.3% of the company. This isn't a retail-driven rally; it's a big-money conviction play on a strategic transformation that is defintely paying off in 2025. Just look at the Q3 2025 numbers, where Adjusted After-Tax Income (AATI) per diluted share surged by a massive 77% to $2.20, powered by General Insurance underwriting income that jumped 81% to $793 million. Plus, management is showing its commitment to shareholders, returning a total of $4.5 billion in capital through buybacks and dividends in the first half of 2025 alone. The core investment thesis is simple: AIG is finally an insurance company that excels at underwriting risk, and the nearly $77 share price, as of early November 2025, reflects the market's growing belief in their ability to sustain a Core Operating Return on Equity (ROE) above 10%.

Who Invests in American International Group, Inc. (AIG) and Why?

You want to know who is betting on American International Group, Inc. (AIG) and what their core motivation is. The direct takeaway is that AIG is overwhelmingly an institutional play, with major index funds and value-oriented asset managers buying into the company's post-restructuring story of capital return and underwriting profitability.

The Institutional Juggernaut: Key Investor Types

AIG's ownership structure is dominated by institutional money, which holds roughly 90.60% of the company's stock, as of late 2025. This is typical for a large, established financial sector company, but the sheer concentration means institutional buying and selling drives the stock price. Retail investors-that's you and me-hold a smaller but still significant slice, about 9.85%. Insiders, like executives and directors, own a minimal 0.20%, which is a number I always watch, but here it's not a major factor.

Here's the quick math on who holds the biggest stakes:

• Passive Funds (Index & ETFs): These are the giants like Vanguard Group Inc. and BlackRock, Inc. They hold AIG simply because it's a major component of indices like the S&P 500. Vanguard alone held over 68.4 million shares as of September 30, 2025.
• Active Managers (Hedge Funds & Asset Managers): Firms like State Street Corp and Wellington Management Group LLP are actively deciding to own AIG, often as a value or turnaround play. They're looking for the stock to re-rate, meaning the market assigns it a higher valuation multiple.

Investment Motivations: Profitability and Capital Return

The core attraction to American International Group, Inc. right now isn't a flashy new product; it's a disciplined return to insurance fundamentals and a commitment to capital return. This is what you're buying into. The separation of Corebridge Financial, Inc. has finally allowed the General Insurance (GI) business to shine.

• Growth Prospects: Analysts expect AIG's earnings per share (EPS) for the 2025 fiscal year to hit a Zacks Consensus Estimate of $6.34, representing a year-over-year growth rate of 28.08%. That's a powerful growth number for a company this size.
• Underwriting Strength: The General Insurance segment is showing real operational improvement. In Q2 2025, GI underwriting income jumped 46% year-over-year to $626 million, a clear sign that the core business is working.
• Dividends and Buybacks (Capital Return): Income investors are drawn to the quarterly dividend of $0.45 per share, which annualizes to $1.80 and offers a yield of about 2.3%. Plus, management is serious about buybacks, returning approximately $2.5 billion to shareholders in Q1 2025 and an additional $2.0 billion in Q2 2025 through repurchases and dividends. That's a defintely strong signal of financial health.

Investment Strategies: Value and Long-Term Holding

The strategies employed by AIG's major shareholders are largely centered on a value-investing thesis, coupled with long-term, passive index holding. Given the company's recent operational improvements, many view it as an undervalued stock with a clear path to higher profitability.

• Value Investing: The stock's price-to-earnings (P/E) ratio of 14.77 and a low Price/Earnings-to-Growth (P/E/G) ratio of just 0.77 as of late 2025 suggests it is cheap relative to its expected earnings growth. Value investors are buying now, betting the multiple will expand closer to peers as the market fully recognizes the improved underwriting performance and capital efficiency.
• Long-Term Holding: The massive stakes held by passive index funds (Vanguard, BlackRock) are, by definition, long-term holdings. They are not trading AIG; they are holding it as a core part of the US financial sector exposure.
• Tactical Plays: We see active position changes, with 438 institutional investors increasing their positions in a recent quarter, while 596 decreased theirs. This churn suggests that hedge funds and other active managers are making tactical bets on the success of AIG's restructuring and capital return programs, often looking for short-term gains around earnings announcements and buyback news.

To be fair, the investment case still requires confidence in management's ability to maintain underwriting discipline and manage catastrophe losses. You can read more about the company's long-term direction here: Mission Statement, Vision, & Core Values of American International Group, Inc. (AIG).

Institutional Ownership and Major Shareholders of American International Group, Inc. (AIG)

If you're looking at American International Group, Inc. (AIG), the first thing you need to know is that this is defintely an institutionally-controlled stock. Institutional shareholders-the big money like mutual funds, pension funds, and asset managers-own a massive chunk of the company. In fact, institutional investors hold around 90.60% of AIG's stock as of late 2025, controlling over 651 million total shares.

What that means for you is that the stock's price movements and, honestly, the company's strategic direction, are heavily influenced by a relatively small number of massive players. You're swimming with whales here, so understanding their positions is crucial. For a deeper dive into the company's structure and history, you can look at American International Group, Inc. (AIG): History, Ownership, Mission, How It Works & Makes Money.

Top Institutional Investors: Who Holds the Keys?

The list of AIG's largest shareholders reads like a who's who of the asset management world. These aren't just passive investors; they represent trillions of dollars in capital, and their collective decisions carry significant weight. The top three alone control a substantial portion of the float, mostly through index funds and large active strategies.

Here's the quick math on the top institutional holders, based on their latest filings, mostly from the third quarter of 2025:

It's clear that the index giants, Vanguard and BlackRock, dominate, which is typical for a large-cap stock like AIG. Their holdings are often passive, tracking the S&P 500 or other broad indices, but their sheer size still makes them the largest owners.

Recent Shifts: Are the Whales Buying or Selling?

Looking at the most recent 13F filings (the quarterly reports institutional investors file with the SEC), we see a mixed but generally positive trend for AIG in 2025. The overall institutional ownership remains high, but there's a clear divergence between funds, which tells an interesting story about conviction in AIG's strategic turnaround.

Some major players were accumulating shares aggressively in the third quarter of 2025:

• Capital Research Global Investors increased its position by a substantial 12,645,616 shares.
• GQG Partners LLC made a massive commitment, increasing its stake to 18.91 million shares.
• Raymond James Financial Inc. boosted its holdings by 151.6% in the first quarter, adding over 1.98 million shares.

But to be fair, not everyone was buying. Some of the largest passive holders were trimming their positions, which often happens due to index rebalancing or minor portfolio adjustments:

• BlackRock, Inc. decreased its shares by 827,849.
• State Street Corp also reduced its position by 850,083 shares.

The key takeaway here is that while some passive funds are slightly reducing their exposure, active managers like Capital Research and GQG are showing strong conviction by making significant buys. That's a good sign for the stock's narrative.

The Institutional Impact on AIG's Strategy

These large investors aren't just names on a spreadsheet; they play a critical role in AIG's stock price and corporate strategy. When they buy or sell in size, it directly impacts liquidity and price. More importantly, their collective voice influences management decisions, especially around capital allocation.

For AIG in 2025, the institutional focus is clearly on capital return and simplification. The firm's completion of a $1.25 billion share buyback in the third quarter, representing 2.86% of shares outstanding, is a direct action to increase per-share value for these shareholders.

This focus on returning capital, alongside the ongoing deconsolidation of Corebridge Financial, Inc. (AIG's ownership was reduced to 21.0% by June 2025), signals a clear strategy: a leaner, more profitable core insurance business. Institutional investors expect disciplined capital management and sustained profitability from the core underwriting business, which is the biggest catalyst for the stock's future.

So, the large institutional ownership essentially acts as a powerful mandate for management to stick to the plan: focus on underwriting profitability, manage catastrophe risks, and keep rewarding shareholders with buybacks and a consistent dividend of $0.45 per share quarterly.

Key Investors and Their Impact on American International Group, Inc. (AIG)

You need to know who holds the reins at American International Group, Inc. (AIG) because institutional investors don't just buy stock; they shape strategy and capital allocation. The direct takeaway is that AIG is overwhelmingly owned by large funds, and their collective focus on capital returns-like the $4.5 billion returned to shareholders in the first half of 2025-is dictating the company's near-term actions.

Currently, institutional investors own a massive chunk of American International Group, Inc. stock, holding around 90.60% of the company. This means the big players-the mutual funds, pension funds, and asset managers-are the ones you should watch, not the retail crowd. Their buying and selling moves create the volatility and provide the liquidity that defines the stock's trading range. Their focus is simple: disciplined underwriting and aggressive capital return.

The Heavy Hitters: Who's Buying and Selling Now

The top shareholders in American International Group, Inc. are exactly who you'd expect to see at the top of a major US financial institution. These aren't just passive index funds; their sheer size gives them a powerful voice in governance, even if they aren't technically 'activists.' The most recent filings (as of September 30, 2025) show the dominance of the Big Three, but also highlight a massive, recent conviction buy from a global fund.

• Vanguard Group Inc: Holds the largest stake with 68,482,752 shares.
• BlackRock, Inc.: Holds the second-largest stake with 46,725,606 shares.
• State Street Corp: A major passive holder, rounding out the top three.

Here's the quick math on conviction: GQG Partners LLC, a notable global fund, made a huge statement in the first quarter of 2025, raising its position by a staggering 33,315.0%. They bought over 18.85 million additional shares, bringing their total holding to 18,909,539 shares, valued at approximately $1.64 billion. That's a serious bet on the ongoing transformation. Still, not everyone is a buyer; BlackRock, Inc. actually trimmed its position by 827,849 shares in the third quarter of 2025, which is a small but defintely notable reduction.

Investor Influence: Driving Capital and Strategy

Investor influence at American International Group, Inc. is less about a single activist screaming from the sidelines and more about a persistent, collective push for capital efficiency. Historically, pressure from activists like Carl Icahn and John Paulson forced the company's hand toward a breakup and a massive capital return program years ago. Today, the influence is seen in AIG's commitment to shareholder returns and strategic modernization.

The company's management is clearly aligned with investor demands for capital discipline. In the first half of 2025, American International Group, Inc. returned a total of $4.5 billion to shareholders, split between $4.0 billion in share repurchases and $488 million in dividends. This commitment is a direct response to the market's valuation of the stock. They also announced a 12.5% increase in the quarterly dividend to $0.45 per share, starting in the second quarter of 2025. That's a clear signal to income-focused funds that the cleanup is paying off. You can read more about the underlying Breaking Down American International Group, Inc. (AIG) Financial Health: Key Insights for Investors.

Strategic Partnerships and Future Alignment

Beyond stock ownership, American International Group, Inc. has a deep, strategic relationship with its largest institutional holders, notably BlackRock, Inc. BlackRock, Inc. isn't just a shareholder; they are a key partner managing up to $150 billion of AIG's assets, which includes up to $60 billion of the global investment portfolio. This dual role-investor and asset manager-creates a powerful alignment of interests, essentially making BlackRock, Inc. a long-term strategic partner in AIG's success.

Furthermore, American International Group, Inc.'s 2025-2027 financial targets, including an increased core operating return on equity (ROE) target range of 10%-13%, are a direct roadmap for institutional investors. The plan involves a strategic shift to increase investments in private markets, with private credit allocation expected to rise to 12-15% of the general insurance portfolio. This move is designed to boost investment income and is precisely the kind of sophisticated capital deployment that large financial institutions demand. The whole strategy is focused on maximizing per-share value.

Next step: Check your portfolio's exposure to American International Group, Inc. and Corebridge Financial, Inc. (the former Life & Retirement business) to ensure your thesis aligns with AIG's aggressive capital return and strategic private market shift. Owner: Portfolio Manager.

Market Impact and Investor Sentiment

You're looking at American International Group, Inc. (AIG) and trying to figure out if the big money-the institutional investors-is still buying, and honestly, the answer is a nuanced but defintely positive 'yes.' The overall sentiment from major shareholders is constructive, driven by the company's sustained operational turnaround and its commitment to returning capital.

As of late 2025, institutional investors own a massive chunk of the company, with holdings sitting between 90.6% and 95.19% of the stock. This high concentration signals a deep, long-term belief in the company's strategic direction, particularly its focus on core underwriting profitability and disciplined capital management. It's a conviction play, not a short-term trade.

For a deeper dive into the company's strategy, you should look at their core objectives: Mission Statement, Vision, & Core Values of American International Group, Inc. (AIG).

Major Shareholder Sentiment: Accumulation vs. Distribution

When you look at the Q3 2025 filings, the picture among the largest holders is mixed, which is normal for a company of this size, but the net effect remains positive. For example, Vanguard Group Inc. significantly increased its position, holding 68,482,752 shares as of September 30, 2025. That's a strong vote of confidence.

But still, other giants like BlackRock, Inc. and State Street Corp. slightly reduced their holdings, with BlackRock, Inc. selling 827,849 shares and State Street Corp. selling 850,083 shares in the same quarter. This is less a sign of panic and more a typical rebalancing within massive index and actively managed funds. The key takeaway is that the institutional base remains rock-solid.

• Vanguard Group Inc.: Increased shares held.
• BlackRock, Inc.: Decreased shares held.
• Capital Research Global Investors: Increased shares held by 12,645,616.
• National Pension Service: Reduced stake by 39.8% (selling 583,143 shares).

Recent Market Reactions and Capital Moves

The stock market has largely rewarded American International Group, Inc.'s focus on shareholder value, even amidst some near-term uncertainty. The stock was up around 6.5% year-to-date as of mid-November 2025. This resilience is a testament to the company's financial performance, which is what investors care about most.

The company's actions on capital return are a major driver of this positive reaction. In the third quarter of 2025 alone, American International Group, Inc. completed a significant share buyback of approximately $1.23 billion, repurchasing 15.44 million shares. Plus, the company declared a quarterly dividend of $0.45 per share on November 4, 2025. These moves signal management's belief that the stock is undervalued and that they have excess capital to deploy, which always makes investors happy.

Here's the quick math: The Q2 2025 net income was a strong $1.1 billion, a massive turnaround from a $4.0 billion net loss in the prior-year quarter. That kind of swing is hard to ignore, and it's why the stock has held its ground despite an unexpected executive leadership change in November 2025.

Analyst Perspectives on Future Impact

Wall Street analysts are generally bullish, which reinforces the positive investor sentiment. The consensus rating is a 'Buy' or 'Moderate Buy', meaning they expect the stock to outperform the broader market over the next 12 months. This is a clear signal to both individual and institutional investors that the transformation story is still in play.

The average price target from analysts is around $89.55, with the highest target set at $97.00. This implies a potential upside of over 15% from the stock's price near the end of 2025. Analysts are betting on the successful execution of the company's strategic plan, which targets a Core Operating Return on Equity (ROE) of 10%+ for the full year 2025.

What this estimate hides is the risk from catastrophe-related losses and litigation, which are always a factor in the insurance business. Still, the underlying performance metrics are strong, as shown in the Q3 2025 results:

The analyst confidence also stems from the company's move to reduce its concentration risk by selling off a portion of its stake in Corebridge Financial, Inc. (CRBG). In Q2 2025, American International Group, Inc. trimmed its Corebridge stake by 10.5%, selling 13,386,629 shares. That is a smart, de-risking move that portfolio managers appreciate.