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What Changed
Risk factors · Feb 13, 2025 → Feb 12, 2026
51 added · 55 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
For example, the European Union Artificial Intelligence Act, which entered into force on August 1, 2024, with various requirements becoming effective at different points in time, broadly regulates the use of AI.
AIG | 2025 Form 10-K 11 TABLE OF CONTENTS ITEM 1A | Risk Factors • Third 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 operations. • We 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. • Our restructuring initiatives may not yield expected reductions in expenses and/or improvements in operational and organizational efficiency. • Strategic transactions, including business or asset acquisitions and dispositions, may expose us to certain risks. • We are subject to risks from our continuing equity market exposure to Corebridge.
AIG | 2025 Form 10-K 13 TABLE OF CONTENTS ITEM 1A | Risk Factors We are exposed to certain risks arising from or exacerbated by fluctuations in interest rates, such as a potential mismatch between the expected duration of our liabilities and our assets, changes in certain statutory reserve or capital requirements that are based on formulas or models that consider interest rates or prescribed interest rates, increased financing and refinancing costs, in particular with respect to our corporate debt instruments, and lower investment income on our floating rate investments that will adjust to lower coupons if short-term rates decrease.
In instances where reinsurance is more costly, insufficient on acceptable terms or unavailable, we have had to, and may in the future have to, accept an increase in exposure to risk, reduce or stop writing certain lines of business written by our subsidiaries or seek alternatives in line with our risk limits, or a combination thereof. 14 AIG | 2025 Form 10-K TABLE OF CONTENTS ITEM 1A | Risk Factors Additionally, we are exposed to credit risk with respect to our subsidiaries’ reinsurers to the extent the reinsurance receivable is not secured, or is or becomes inadequately secured by collateral or does not benefit from other credit enhancements.
In 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. 18 AIG | 2025 Form 10-K TABLE OF CONTENTS ITEM 1A | Risk Factors A downgrade by one or more of the rating agencies in the Insurer Financial Strength ratings of our insurance companies could limit their ability to write or prevent them from writing new business and impair their retention of customers and in-force business, and a downgrade in our credit ratings could adversely affect our business, results of operations, financial condition and liquidity.
In some cases, such a compromise may not be immediately detected, which may make it difficult to restore critical services, mitigate damage to assets and maintain the integrity and security of data including any policyholder, employee, agent, and other confidential information processed through our systems and networks. 20 AIG | 2025 Form 10-K TABLE OF CONTENTS ITEM 1A | Risk Factors Additionally, since we rely heavily on information technology and systems (which is expected to increasingly include the use of artificial intelligence), on digital connectivity with trading partners, and on the integrity and timeliness of data to run our businesses and service our customers, any such security event and resulting compromise of systems or data have in the past and could in the future impede or interrupt our business operations and our ability to service our customers, and materially and adversely affect our business, results of operations, financial condition and liquidity.
AIG | 2025 Form 10-K 19 TABLE OF CONTENTS ITEM 1A | Risk Factors Pricing for our products is subject to our ability to adequately assess risks and estimate related losses.
AIG | 2025 Form 10-K 5 TABLE OF CONTENTS ITEM 1 | Business (i) requiring deposits of cash or securities for the benefit of policyholders;
Business and Operations • Our 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. • Pricing for our products is subject to our ability to adequately assess risks and estimate related losses. • We are exposed to certain risks if we are unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data, which could compromise our ability to conduct business and adversely affect our consolidated business, results of operations, financial condition and liquidity. • Our development and use of new technology, such as generative artificial intelligence, may present risks. • Our foreign operations expose us to risks that may affect our operations.
Laws, regulations and guidance adopted in U.S. local, state, federal or foreign jurisdictions regarding these topics differ from one another and this results in us having to comply with differing or inconsistent laws, regulations and guidance across jurisdictions in which we operate.
Further, various jurisdictions have unique requirements with respect to AI, third-party engagement, business resiliency and environmental, social and governance matters as well as matters relating to data protection and cybersecurity, which may impact the efficacy of our standardized risk management tools and techniques.
In addition, such failure has and could subject us to litigation, investigations, sanctions, and regulatory and law enforcement action and other liability under U.S. and international laws and regulations, including remediation or other expenses.
No longer disclosed
The Society of Lloyd’s also provides regulatory oversight of AIG’s Lloyd’s Managing Agent, Talbot Underwriting Limited. 8 AIG | 2024 Form 10-K TABLE OF CONTENTS ITEM 1 | Business In the EU, various Directives and Regulations affect our international insurance operations.
The GDPR imposes requirements on the transfer of personal data outside of the EEA, including via standard contractual clauses supplemented by an assessment and due diligence of the legal and regulatory landscape of the jurisdiction of the data importer, the channels used to transmit personal data and the processors or subprocessors of personal data. 10 AIG | 2024 Form 10-K TABLE OF CONTENTS ITEM 1 | Business The NAIC and certain U.S. states have adopted or are considering regulations and guidance relating to the use of “big data,” AI, machine learning and other technology innovations in the insurance marketplace.
Business and Operations • Our 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. • Pricing for our products is subject to our ability to adequately assess risks and estimate related losses. • We are exposed to certain risks if we are unable to maintain the availability of our critical technology systems and data and safeguard the confidentiality and integrity of our data, which could compromise our ability to conduct business and adversely affect our consolidated business, results of operations, financial condition and liquidity. • Our foreign operations expose us to risks that may affect our operations. • Third 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 operations. 12 AIG | 2024 Form 10-K TABLE OF CONTENTS ITEM 1A | Risk Factors • We 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. • Our restructuring initiatives may not yield expected reductions in expenses and/or improvements in operational and organizational efficiency. • Business or asset acquisitions and dispositions may expose us to certain risks. • We are subject to risks from our continuing equity market exposure to Corebridge.
AIG | 2024 Form 10-K 15 TABLE OF CONTENTS ITEM 1A | Risk Factors Additionally, we are exposed to credit risk with respect to our subsidiaries’ reinsurers to the extent the reinsurance receivable is not secured, or is inadequately secured by collateral or does not benefit from other credit enhancements.
These initiatives could impair our cash flows and, without regulatory relief, could adversely impact our subsidiaries’ capital ratios. 16 AIG | 2024 Form 10-K TABLE OF CONTENTS ITEM 1A | Risk Factors For additional information on potential catastrophic events, including a sensitivity analysis of our exposure to certain catastrophes, see Part II, Item 7.
If any of our investment managers becomes unable to effectively manage our portfolio investments, the concentration of assets in our portfolio that are managed by it could adversely affect our business, results of operations, financial condition and liquidity. 18 AIG | 2024 Form 10-K TABLE OF CONTENTS ITEM 1A | Risk Factors In addition, we have become more reliant on our external asset managers, and such increased dependence has and may reduce our internal capabilities and expertise or expose us to greater risk, including the risk that external asset managers may fail to meet our performance expectations or otherwise experience disruptions or losses.
The European Union Artificial Intelligence Act, which entered into force on August 1, 2024, and will be effective from August 2, 2026, will broadly regulate the use of AI within the European Union.
In March 2024, the SEC adopted final rules on climate-related disclosure, which have been stayed pending completion of judicial review in the U.S.
We make available free of charge, through the Investors section of our corporate website, the reports that we file or furnish with the SEC (including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements on Schedule 14A, any amendments to each of those reports and filings, and other disclosure), corporate governance information (including our Code of Business Conduct and Ethics and any amendments of or waivers from the Code of Business Conduct and Ethics), and select press releases.
Except for the documents specifically incorporated by reference into this Annual Report on Form 10-K, information contained on our website or that can be accessed through our website is not incorporated by reference into this Annual Report on Form 10-K.
It is also possible that the laws, regulations and guidance adopted in U.S. local, state, U.S. federal or foreign jurisdictions regarding climate change-related risks will differ from one another, and that they could be inconsistent with the laws and regulations of other jurisdictions in which we operate.
Indirect climate change effects are also seen in litigation over flooding, mudslides and other severe weather that results in injury or damage, as well as in construction defect litigation, chemical release lawsuits, and workers’ compensation claims.