AIG’s New CEO Swings “Zero‑Cost” RSU Package, Inside Buying Surges – Management Bets Big on Future Stock Gains

Insider Confidence Amid a Tightening Market

Eric Andersen, the incoming President & CEO of American International Group (AIG), has just granted himself a sizeable package of Equity Buy‑Out Restricted Stock Units (RSUs) and 2026 stock options. While the grant is effectively a “zero‑cost” transaction—no cash paid and no immediate dilution—the move signals Andersen’s long‑term alignment with the company’s performance. The RSUs will vest on February 16, 2029, and the options will roll out over three years, tying Andersen’s upside to AIG’s earnings trajectory. For investors, this is a conventional “lock‑in” gesture that can be interpreted as confidence in AIG’s future, especially given the company’s recent valuation adjustments by major analysts and a steady rise in its share price.

A Company‑Wide Surge in Insider Buying

AIG’s insider activity has been robust across senior management, with more than 12 executives completing 30+ transactions in February alone. The bulk of these deals involve purchases of common stock and 2026 stock options, underscoring a shared belief that AIG’s equity is poised for appreciation. Notably, Chairman Peter Zaffino and EVP Jonathan Hancock both executed large option purchases, while the CFO Walsh Keith continued a pattern of buying despite a recent sell. This concentration of buying at the top level tends to dampen short‑term volatility and can be seen as a vote of confidence that the company’s risk‑adjusted returns will improve.

What This Means for Investors

1. Signal of Management Belief The pattern of new option grants and stock purchases suggests that AIG’s leadership expects the insurer’s stock to outperform its peers over the next three years. For equity holders, this can reduce perceived agency risk and may support the current price of $79.4.

2. Potential for Shareholder Value Creation AIG’s strong capital base and diversified insurance portfolio position it well to weather cyclical swings in the financial markets. The insider activity aligns with this view, hinting at a possible upside if the company’s underwriting performance and investment earnings continue to improve.

3. Caveats and Risks The recent analyst revisions—Wells Fargo’s price target lift to $87 and Piper Sandler’s reduction to $88—illustrate a split view on AIG’s near‑term prospects. While insiders are bullish, the market remains sensitive to macro‑economic shifts, regulatory changes, and underwriting loss developments that could impact the stock’s trajectory.

Looking Ahead

With the RSUs and options slated to vest over the next three to four years, the next critical touchpoint will be AIG’s 2026 earnings report and the performance of its core insurance lines. Should the company deliver on its strategic initiatives—streamlining operations, enhancing digital platforms, and expanding its retirement products—the insider optimism may translate into a tangible upside for shareholders. For now, the combined insider purchases and equity grants provide a cautiously optimistic outlook, suggesting that management’s confidence in AIG’s future growth is stronger than the current market sentiment indicates.