American International Group (AIG) risk factors, FY2025 10-K

Other

1. 01Deterioration of economic conditions, geopolitical tensions, changes in market conditions or weakening global capital markets have affected and may continue to materially affect our businesses, results of operations, financial condition and liquidity21% rewritten
2. 02The amount and timing of insurance liability claims are difficult to predict and such claims may exceed the related liability for unpaid losses and loss adjustment expenses
3. 03Reinsurance may be unavailable or too expensive relative to its benefit and may not be adequate to protect us against losses
4. 04Our consolidated results of operations, liquidity, financial condition and ratings are subject to the effects of natural and man-made catastrophic events as well as mass torts
5. 05Climate change may adversely affect our business and financial condition50% rewritten
6. 06We have also faced and may continue to face business continuity risk as a result of climate change-related incidents that may disrupt business operations, including extreme weather events. We cannot predict the long-term impacts of climate change on our business and results of operations
7. 07Concentration of our insurance, reinsurance and other risk exposures may have adverse effects37% rewritten
8. 08Losses due to nonperformance or defaults by counterparties may materially and adversely affect the value of our investments, our profitability and sources of liquidity
9. 09Our investment portfolio is concentrated in certain segments of the economy, and the performance and value of our investment portfolio are subject to a number of risks and uncertainties
10. 10We rely on investment management and advisory arrangements with third-party investment managers for the majority of our investment portfolio97% rewritten
11. 11AIG Parent’s ability to access funds from our subsidiaries is limited, and our sources of liquidity may be insufficient to meet our needs, including providing capital that may be required by our subsidiaries
12. 12We may not be able to generate cash to meet our needs due to the illiquidity of some of our investments36% rewritten
13. 13In the event additional liquidity is required by one or more of our companies, it may be difficult for us to generate additional liquidity by selling, pledging or otherwise monetizing these or other investments at reasonable prices and time frames
14. 14Our risk management policies, standards and procedures may prove to be ineffective and leave us exposed to unidentified or unanticipated risk, which could adversely affect our businesses, results of operations, financial condition and liquidity
15. 15Pricing for our products is subject to our ability to adequately assess risks and estimate related losses22% rewritten
16. 16Our development and use of new technology, such as generative artificial intelligence, may present risksNew
17. 17Our foreign operations expose us to risks that may affect our operations39% rewritten
18. 18Third parties we rely upon to provide certain business and administrative services on our behalf may not perform as anticipated, which could have an adverse effect on our business and results of operations46% rewritten
19. 19We may experience difficulty in marketing and distributing products through our current and future distribution channels and the use of third parties may result in additional liabilities
20. 20Key distribution partners could merge, consolidate, change their business models in ways that affect how our products are sold, or terminate their distribution contracts with us, or new distribution channels could emerge and adversely impact the effectiveness of our distribution efforts
21. 21Our restructuring initiatives may not yield expected reductions in expenses and/or improvements in operational and organizational efficiency
22. 22Strategic transactions, including business or asset acquisitions and dispositions, may expose us to certain risks49% rewritten
23. 23Since the closing of the initial public offering of Corebridge’s common stock in September of 2022, we have continued to sell down our interest in CorebridgeNew
24. 24Significant legal or regulatory proceedings may adversely affect our business, results of operations or financial condition
25. 25For information regarding certain legal proceedings, see Notes 15 and 21 to the Consolidated Financial Statements32% rewritten
26. 26We may not be able to protect our intellectual property and may be subject to infringement claims
27. 27Our businesses are heavily regulated and changes in laws and regulations may affect our operations, increase our insurance subsidiary capital requirements or reduce our profitability24% rewritten
28. 28New laws and regulations or new interpretations of current laws and regulations, both domestically and internationally, may affect our businesses, results of operations, financial condition and ability to compete effectively
29. 29An “ownership change” could limit our ability to utilize tax loss and credit carryforwards to offset future taxable income
30. 30New and proposed changes to tax laws could increase our corporate taxes51% rewritten
31. 31Estimates or assumptions used in the preparation of financial statements and modeled results used in various areas of our business may differ materially from actual experience
32. 32Changes in accounting principles and financial reporting requirements may impact our consolidated results of operations and financial condition
33. 33For information regarding the impact of accounting pronouncements that have been issued but are not yet required to be implemented, see Note 2 to the Consolidated Financial Statements
34. 34Employee error and misconduct may be difficult to detect and prevent and may result in reputational damage and significant losses
35. 35Competition for employees in our industry is intense, and managing key employee succession is critical to our success
36. 36Our businesses operate in highly competitive environments, both domestically and overseas. Our principal competitors are other property and casualty insurance organizations22% rewritten