American International Group (AIG) 10-K risk factor changes: FY2023 vs FY2022

*For additional [removed: information on these products,] [added: information,] see [removed: Notes 12 and 13] [added: Note 23] to the Consolidated Financial [removed: Statements, Item 1.][added: Statements.*]

| [removed: 28] [added: 34] | | | AIG \| [removed: 2022] [added: 2023] Form 10-K | | |

| AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 29] [added: 35] | | |

| [removed: 30] [added: 36] | | | AIG \| [removed: 2022] [added: 2023] Form 10-K | | |

[removed: COVID-19] [added: COVID-19 (including variants)] has adversely affected and may continue to adversely affect our global business, results of operations, financial condition and [removed: liquidity, and its ultimate impact will depend on future developments that are uncertain and cannot be predicted.][added: liquidity.” above*.]

[removed: Employee error and misconduct may be difficult to detect and prevent and may result in reputational damage and significant losses.] There have been a number of cases involving fraud or other misconduct by employees in recent years and we are exposed to the risk that employee fraud or misconduct could occur.

We may not be able to [removed: retain and] attract [added: and retain the] key employees and other highly skilled employees we need to support our businesses. [removed: Our success depends, in large part, on our ability to retain and attract key and other highly skilled employees.]

We face intense competition in each of our business lines, and technological changes may present new and intensified challenges to our businesses. [removed: Our businesses operate in highly competitive environments, both domestically and overseas.]

Technological advancements and innovation in the insurance industry, including those related to evolving customer preferences, the digitization of insurance products and services, [added: data ingestion and exchange with trading partners,] acceleration of automated underwriting, and [added: use of artificial intelligence and] electronic processes present competitive risks.

Technological advancements and innovation are occurring in distribution, underwriting, recordkeeping, advisory, [added: marketing,] claims and operations at a rapid pace, and that pace may increase, particularly as companies increasingly use data analytics and technology as part of their business strategy.

[removed: Additional] [added: Further, additional] costs may also be incurred in order to implement changes to automate procedures critical to our distribution channels in order to increase flexibility of access to our services and products.

[removed: The laws and regulations that apply to] our [removed: business and operations generally grant regulatory agencies and/or self-regulatory organizations broad rulemaking and enforcement powers, including the power to regulate the issuance, sale and distribution of our products, the manner in which we underwrite our policies, the delivery of our services, the nature or extent of disclosures that we give our] customers, the compensation of our distribution partners, the manner in which we handle claims on our policies and the administration of our policies and contracts, as well as the power to limit or restrict our business for failure to comply with applicable laws and regulations.

The relevant authorities may not agree with our interpretation of these laws and regulations, including, for example, our implementation of new or revised requirements related to [removed: capital, accounting treatment or reserving such] [added: the classification of debt securities that do not qualify] as [removed: those governing PBR,] [added: bonds,] or with our policies and procedures adopted to address evolving industry practices or meet regulatory expectations.

[added: Additionally, when such authorities’ interpretation of new or revised requirements related to capital, accounting] treatment and/or valuation manual or reserving (such as PBR) materially differs from ours, we have incurred or may incur higher operating costs, or sales of products subject to such requirements or treatment may be affected.

The NAIC [removed: recently adopted,] [added: adopted in 2020,] and the IAIS is developing and [removed: testing,] [added: testing for implementation beginning in 2025,] methodologies for assessing group-wide regulatory capital, which might evolve into more formal group-wide [added: prescribed] capital requirements on certain insurance companies and/or their holding companies that may augment state-law RBC standards, and similar international standards, that apply at the legal entity level, and such capital calculations may be made, in whole or in part, on bases other than the statutory statements of our insurance and reinsurance subsidiaries.

In addition to the regulation of specific activities, the Financial Stability Oversight Council [removed: continues to have] [added: has] authority under Dodd-Frank to determine that certain nonbank financial companies be designated as nonbank SIFIs subject to supervision by the Board of Governors of the Federal Reserve System and enhanced prudential [removed: standards.][added: standards, and recently adopted revised guidance and procedures intended to govern any such designations.]

It is possible such laws and regulations, [added: including, without limitation, Solvency II] and [removed: our satisfaction of] [added: European Data Protection Board Cross Border Data Transfer in] the [removed: relevant criteria] [added: EU,] and standard-setting initiatives by the FSB and the IAIS, including, but not limited to, the IAIS’ Common Framework for the Supervision of IAIGs, [removed: a] [added: its] holistic framework for the assessment and mitigation of systemic risk and the development and refinement of a risk-based global ICS, [removed: Solvency II and European Data Protection Board Cross Border Data Transfer in the EU,] may significantly alter our business practices.

*For information regarding the regulatory response to the COVID-19 pandemic, see Business and Operations – [removed: “COVID-19 has affected] [added: “An epidemic, pandemic or other health crisis could materially] and [removed: may continue to] adversely affect our [removed: global business,] [added: business] results of operations, financial condition and [removed: liquidity, and its ultimate impact will depend on future developments that are uncertain and cannot be predicted” above.*][added: liquidity.]

[removed: New 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.] Legislators, regulators and self-regulatory organizations have in the past, and may in the future, periodically consider various proposals that may affect or restrict, among other things, our business [removed: practices,] [added: practices and activities,] product designs and distribution relationships, how we market, sell or service certain products we offer, [added: the investment assets we hold and] our [added: investment management practices, our] capital, reserving and accounting requirements, or the profitability of certain of our businesses.

Further, new laws and regulations may affect or significantly limit our ability to conduct certain businesses at all, including proposals relating to restrictions on the type of activities in which financial institutions are permitted to [removed: engage.][added: engage into.]

An “ownership change” could limit our ability to utilize tax loss and credit carryforwards to offset future taxable income. [removed: As of December 31, 2022, on a U.S. GAAP basis, AIG Parent had U.S. federal net operating loss carryforwards of approximately $24.8 billion and $22 million in foreign tax credits.]

An entity that experiences an ownership change generally will be subject to an annual limitation on its utilization of pre-ownership change tax loss [added: and credit carryforwards equal to the equity value of the corporation immediately before the ownership change, multiplied by the long- term, tax-exempt rate posted monthly by the IRS (AFR) (subject to certain adjustments).]

[removed: Estimates 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.] Our financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles (U.S. GAAP), which requires the application of accounting policies that often involve a significant degree of judgment.

The accounting policies that we consider most dependent on the application of estimates and assumptions, and therefore may be viewed as critical accounting estimates, are described in [added: Note 1 to the Consolidated Financial Statements and in] Item 7.

These estimates are based on judgment, current facts and circumstances, and, when applicable, [removed: internally] [added: models] developed [removed: models.][added: internally or with inputs from third parties.]

Therefore, actual results may differ from these [removed: estimates,] [added: estimates and models,] possibly in the near term, and could have a material effect on our financial statements.

To the extent that any of our operating practices and procedures do not accurately produce, or reproduce, data that we use to conduct any or all aspects of our business, such differences may negatively impact our business, [added: reputation, results of operations, and financial condition.]

Changes in accounting principles and financial reporting requirements [removed: will] [added: may] impact our consolidated results of operations and financial condition. [removed: Our financial statements are prepared in accordance with U.S. GAAP, which are periodically revised.]

The adoption of [removed: this newly issued standard will, and other future] [added: new or revised] accounting standards [removed: may, impact] [added: has in the past, and may in the future impact,] our reported consolidated results of operations, liquidity and reported financial condition and may cause investors to perceive greater volatility in our financial results, negatively impacting our level of investor interest and investment.

If our businesses do not perform well and/or their estimated fair values decline, we may be required to recognize an impairment of our goodwill or establish an additional valuation allowance against the deferred income tax assets, which could have a material adverse effect on our results of operations and financial condition. [removed: Goodwill represents the excess of the amounts we paid to acquire subsidiaries and other businesses over the fair value of their net assets at the date of acquisition.]

In [removed: 2022,] [added: 2023,] for substantially all of the reporting units we elected to bypass the qualitative assessment of whether goodwill impairment may exist and, therefore, performed quantitative assessments that supported a conclusion that the fair value of all of the reporting units tested exceeded their book value.

Our goodwill balance was [removed: $3.9] [added: $3.5] billion at December 31, [removed: 2022.][added: 2023.]

MD&A – Critical Accounting Estimates – Goodwill Impairment and Note [removed: 11] [added: 12] to the Consolidated Financial Statements.*

As of December 31, [removed: 2022,] [added: 2023,] we had net deferred tax assets, after valuation allowance, of [removed: $14.8] [added: $14.1] billion, related to federal, foreign, and state and local jurisdictions.

MD&A – Critical Accounting Estimates – Income Taxes and Note [removed: 21] [added: 23] to the Consolidated Financial Statements.*

There has also been increased regulatory scrutiny of the use of “big data” techniques, machine learning, predictive models and artificial intelligence, including in the insurance industry.

Certain insurance regulators are developing, or have developed, regulations or guidance applicable to insurance companies that use artificial intelligence, “big data” techniques, machine learning and predictive models in their operations.

We cannot predict what, if any, regulatory actions may be taken in the future with regard to “big data,” artificial intelligence, machine learning or predictive models, but any limitations or restrictions could have a material impact on our business, processes, results of operations and financial condition.

New 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.

As of December 31, 2023, on a U.S. GAAP basis, AIG Parent had U.S. federal net operating loss carryforwards of approximately $22.0 billion.

New and proposed changes to tax laws could increase our corporate taxes or make some of our products less attractive to consumers.

The Inflation Reduction Act of 2022, includes a 15 percent corporate alternative minimum tax (CAMT) on adjusted financial statement income for corporations with average profits over $1 billion over a three-year period.

Although the U.S. Treasury and the Internal Revenue Service issued interim CAMT guidance during 2023, many details and specifics of application of the CAMT remain subject to future guidance.

We are subject to CAMT for 2023.

Our estimated CAMT liability will continue to be refined based on future guidance.

Estimates 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.

Our financial statements are prepared in accordance with U.S. GAAP, which are periodically revised.

Goodwill represents the excess of the amounts we paid to acquire subsidiaries and other businesses over the fair value of their net assets at the date of acquisition.

Employee error and misconduct may be difficult to detect and prevent and may result in reputational damage and significant losses.

Our success depends, in large part, on our ability to retain and attract key and other highly skilled employees.

Our businesses operate in highly competitive environments, both domestically and overseas.

If we are unable to effectively implement these technological advancements in our business, including the use of artificial intelligence, in a way that matches or exceeds our competitors, we may suffer competitive harm as a result, which could adversely impact our reputation, results of operations and financial condition.

*For further discussion on regulatory developments with respect to emerging technologies, see – Regulation below.*

We employ a capital markets hedging strategy to partially offset the economic impacts of movements in equity, interest rate and credit markets, however, our hedging strategy may not effectively offset movements in our GAAP equity or our and statutory surplus and capital requirements and may otherwise be insufficient in relation to our obligations.

Furthermore, we are subject to the risk that changes in policyholder behavior or actual levels of mortality/longevity as compared to assumptions in pricing and reserving, combined with adverse market events, could produce losses not addressed by the risk management techniques employed.

These factors, individually or collectively, may have a material adverse effect on our business, financial condition, results of operations or liquidity including our ability to receive dividends from our operating companies.

Changes in interest rates result in changes to the fair value liability.

All else being equal, higher interest rates generally decrease the fair value of our liabilities, which increases our earnings, while low interest rates generally increase the fair value of our liabilities, which decreases our earnings.

A prolonged low interest rate environment or a prolonged period of widening credit spreads may also subject us to increased hedging costs or an increase in the amount of statutory reserves that our insurance subsidiaries are required to hold for our liabilities, lowering their statutory surplus, which would adversely affect their ability to pay dividends.

In addition, it may also increase the perceived value of our benefits to our policyholders, which in turn may lead to a higher than expected benefit utilization and persistency of those products over time.

Differences between the change in fair value of the GAAP embedded derivatives, as well as associated statutory and tax liabilities, and the value of the related hedging portfolio may occur and can be caused by movements in the level of equity, interest rate and credit markets, market volatility, policyholder behavior and mortality/longevity rates that differ from our assumptions and our inability to purchase hedging instruments at prices consistent with the desired risk and return trade-off.

In addition, we may sometimes choose not to hedge or fully mitigate these risks, based on economic considerations and other factors.

The occurrence of one or more of these events has in the past resulted in, and could in the future result in, an increase in the fair value of liabilities associated with the guaranteed benefits without an offsetting increase in the value of our hedges, or a decline in the value of our hedges without an offsetting decline in our liabilities, thus reducing our results of operations and shareholders’ equity.

Business – Regulation and Part II, Item 7.

MD&A – Critical Accounting Estimates – Guaranteed Benefit Features of Variable Annuity, Fixed Annuity and Fixed Index Annuity Products.*

Our risk management policies 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. We have developed and continue to enhance enterprise-wide risk management policies and procedures to identify, monitor and mitigate risk and loss to which we are exposed.

Our risk management policies and procedures may not be sufficiently comprehensive and may not identify or adequately protect us from every risk to which we are exposed.

Many of our methods of identifying, measuring, underwriting and managing risks are based upon our study and use of historical market, applicant, customer, employee and bad actor behavior or statistics based on historical models.

As a result, these methods may not accurately predict future exposures from events such as a major financial market disruption as the result of a natural or man-made disaster (for example, a climate-related event or terrorist attack), that could be significantly different than the historical measures indicate, and which could also result in a substantial change in policyholder behavior and claims levels not previously observed.

We have and will continue to enhance our underwriting processes, including, from time to time, considering and integrating newly available sources of data to confirm and refine our traditional underwriting methods.

Our efforts at implementing these improvements may not, however, be fully successful, which may adversely affect our competitive position.

We have also introduced new product features designed to limit our risk and taken actions on in-force business, which may not be fully successful in limiting or eliminating risk.

We may take additional actions on our in-force business, including adjusting crediting rates and cost of insurance, which may not be fully successful in maintaining profitability and which may result in litigation.

Moreover, our hedging programs and reinsurance strategies that are designed to manage market risk and mortality risk rely on assumptions regarding our assets, liabilities, general market factors and the creditworthiness of our counterparties that could prove to be incorrect or inadequate.

Our hedging programs utilize various derivative instruments, including but not limited to equity options, futures contracts, interest rate swaps and swaptions, as well as other hedging instruments, which may not effectively or completely reduce our risk; and assumptions underlying models used to measure accumulations and support reinsurance purchases may prove inaccurate and could leave us exposed to larger than expected catastrophe losses in a given year.

In addition, our current business continuity and disaster recovery plans may not be sufficient to reduce the impact of pandemics, cyber risks, including ransomware, and other natural or man-made catastrophic events that are beyond our anticipated thresholds or impact tolerances.

Other risk management methods depend upon the evaluation of information regarding markets, clients, or other matters that is publicly available or otherwise accessible to us, which may not always be accurate, complete, up-to-date or properly evaluated.

Management of operational, legal and regulatory risks requires, among other things, policies and procedures to record and verify large numbers of transactions and events in each jurisdiction in which we operate.

Jurisdictions have unique requirements with respect to artificial intelligence and environmental, social and governance matters, which may impact the efficacy of our standardized risk management tools and techniques and therefore our policies and procedures may not be fully effective.

Accordingly, our risk management policies and procedures may not adequately mitigate the risks to our business, results of operations, financial condition and liquidity.

| | | | | | | |

| --- | --- | --- | --- | --- | --- | --- |

ITEM 1A | Risk Factors

If our risk management policies and procedures are ineffective, we may suffer unexpected losses and could be materially adversely affected.

As our businesses change and the markets in which we operate evolve and new risks emerge, including for example risks related to climate change or meeting regulatory and stakeholder expectations relating to ESG or cybersecurity issues, our risk management framework may not evolve at the same pace as those changes.

As a result, there is a risk that new products or new business strategies may present risks that are not appropriately identified, monitored or managed.

The effectiveness of our risk management strategies may be limited, resulting in losses, because of market stress, unanticipated financial market movements or unanticipated claims experience from adverse mortality, morbidity or policyholder behavior.

In addition, there can be no assurance that we can effectively review and monitor all risks or that all of our employees will understand and follow (or comply with) our risk management policies and procedures.

Our foreign operations expose us to risks that may affect our operations. We provide insurance, reinsurance, investment and other financial products and services to both businesses and individuals in approximately 70 countries and jurisdictions.

A substantial portion of our business is conducted outside the United States, and we intend to continue to grow our business in strategic markets.

Operations outside the United States have in the past been, and may in the future be, affected by regional economic downturns, changes in foreign currency exchange rates, political events or upheaval, sanctions policies, nationalization and other restrictive government or regulatory actions, which could also affect our other operations.

AIG subsidiaries operating in foreign jurisdictions must satisfy local regulatory requirements and it is possible that local licenses may require AIG Parent to meet certain conditions.

Licenses issued by foreign authorities to our subsidiaries are subject to modification and revocation.

At December 31, [removed: 2022,] [added: 2023,] total reinsurance recoverable assets were [removed: $71.6] [added: $67.5] billion.

These assets include general reinsurance paid losses recoverable of [removed: $4.4] [added: $4.6] billion, ceded loss reserves of [removed: $32.2] [added: $30.4] billion including reserves for IBNR claims, and ceded reserves for unearned premiums of $4.3 billion, as well as life reinsurance recoverable of [removed: $30.7] [added: $28.2] billion.

We believe that the amount recorded for ceded loss reserves at December 31, [removed: 2022] [added: 2023] reflects a reasonable estimate of the ultimate losses recoverable.

At December 31, [removed: 2022,] [added: 2023,] we held [removed: $74.3] [added: $70.1] billion of collateral, in the form of funds withheld, securities in reinsurance trust accounts and/or irrevocable letters of credit, in support of reinsurance recoverable assets from unaffiliated reinsurers.

At December 31, [removed: 2022,] [added: 2023,] we had no significant reinsurance recoverable due from any individual reinsurer that was financially troubled.

The [removed: RCD,] [added: Reinsurance Credit Department,] in conjunction with the credit executives within ERM, reviews these developments, monitors compliance with credit triggers that may require [removed: the] [added: AIG's] reinsurer to post collateral, and seeks to use other appropriate means to mitigate any material risks arising from these developments.

Assets under administration include assets under management and [removed: Retail Mutual Funds and] Group Retirement mutual fund assets that we sell or administer.

[removed: CSA *Credit] [added: Credit] Support [removed: Annex*] [added: Annex] A legal document generally associated with an ISDA Master Agreement that provides for collateral postings which could vary depending on ratings and threshold levels.

VOBA *Value of Business Acquired* Present value of [removed: projected] future [removed: gross] [added: pre-tax] profits from in-force policies of acquired [removed: businesses.][added: businesses discounted at yields applicable at the time of purchase.]

| A&H | | | Accident and Health Insurance | | | [removed: GMDB] [added: GMWB] | | | Guaranteed Minimum [removed: Death] [added: Withdrawal] Benefits | | |

| [removed: APTI] [added: ABS] | | | [removed: Adjusted pre-tax income] [added: Asset-Backed Securities] | | | ISDA | | | International Swaps and Derivatives Association, Inc. | | |

| GIA | | | Guaranteed Investment Agreements | | | [added: URR] | | | [added: Unearned Revenue Reserve] | | |

Our hedging programs utilize various derivative instruments, including but not limited to equity options, futures contracts, interest rate swaps and swaptions.

In addition, within the variable annuities hedging program, we purchase certain fixed income securities classified as available for sale.

The hedging programs are monitored on a daily basis to ensure that the economic liability hedge targets and the associated derivative portfolios stay within the threshold limits, pursuant to the approved hedging strategies.

In addition, monthly stress tests are performed to determine the program’s effectiveness relative to the applicable limits, under an array of combined severe market stresses in equity prices, interest rates, volatility and credit spreads.

Finally, hedging strategies are reviewed regularly to gauge their effectiveness in managing our market exposures in the context of our overall risk appetite.

*For information on the impact on our consolidated pre-tax income from the change in fair value of the embedded derivatives and the hedging portfolio, as well as additional discussion of differences between the economic hedge target and the valuation of the embedded derivatives, see Insurance Reserves – Life and Annuity Future Policy Benefits, Policyholder Contract Deposits and Market Risk Benefits – Variable Annuity Guaranteed Benefits and Hedging Results.*

Reinsurance Activities

We purchase reinsurance for our insurance and reinsurance operations.

Reinsurance facilitates insurance risk management (retention, volatility, concentrations) and capital planning.

We may purchase reinsurance on a pooled basis.

Reinsurance is used primarily to manage overall capital adequacy and mitigate the insurance loss (Life and Non-Life) exposure related to certain events, such as natural and man-made catastrophes, death events, or single policy level events.

Our subsidiaries operate worldwide primarily by underwriting and accepting risks for their direct account on a gross basis and reinsuring a portion of the exposure on either an individual risk or an aggregate basis to the extent those risks exceed the desired retention level.

In addition, as a condition of certain direct underwriting transactions, we may be required by clients, agents or regulation to cede all or a portion of risks to specified reinsurance entities, such as captives, other insurers, local reinsurers and compulsory pools.

| AIG \| 2023 Form 10-K | | | 121 | | |

| 122 | | | AIG \| 2023 Form 10-K | | |

MRB *Market risk benefit* is an amount that a policyholder would receive in addition to the account balance upon the occurrence of a specific event or circumstance, such as death, annuitization, or periodic withdrawal that involves protection from capital market risk.

| AIG \| 2023 Form 10-K | | | 123 | | |

VOBA is reported in DAC in the Consolidated Balance Sheets.

| APTI | | | Adjusted pre-tax income | | | Moody's | | | Moody's Investors' Service Inc. | | |

| AUM | | | Assets Under Management | | | MRBs | | | Market Risk Benefits | | |

| CMBS | | | Commercial Mortgage-Backed Securities | | | ORR | | | Obligor Risk Ratings | | |

| ERM | | | Enterprise Risk Management | | | RMBS | | | Residential Mortgage-Backed Securities | | |

| FASB | | | Financial Accounting Standards Board | | | S&P | | | Standard & Poor's Financial Services LLC | | |

| GAAP | | | Accounting Principles Generally Accepted in the United States of America | | | SEC | | | Securities and Exchange Commission | | |

| GIC | | | Guaranteed Investment Contracts | | | VIE | | | Variable Interest Entity | | |

| GMDB | | | Guaranteed Minimum Death Benefits | | | | | | | | |

Reinsurance markets include:

- Traditional local and global reinsurance markets including those in the United States, Bermuda, London and Europe, accessed directly and through reinsurance intermediaries;

- Capital markets through insurance-linked securities and collateralized reinsurance transactions, such as catastrophe bonds, sidecars and similar vehicles; and

- Other insurers that engage in both direct and assumed reinsurance.

The form of reinsurance we may choose from time to time will generally depend on whether we are seeking:

- proportional reinsurance, whereby we cede a specified percentage of premiums and losses to reinsurers;

- non-proportional or excess of loss reinsurance, whereby we cede all or a specified portion of losses in excess of a specified amount on a per risk, per occurrence (including catastrophe reinsurance) or aggregate basis; or

- facultative contracts that reinsure individual policies.

We continually evaluate the relative attractiveness of different forms of reinsurance contracts and different markets that may be used to achieve our risk and profitability objectives.

In certain markets, we are required to participate on a proportional basis in reinsurance pools based on our relative share of direct writings in those markets.

Such mandatory reinsurance generally covers higher-risk consumer exposures such as assigned-risk automobile and earthquake, as well as certain commercial exposures such as workers’ compensation.

The Reinsurance Credit Department (RCD) conducts periodic detailed assessments of the financial strength and condition of current and potential reinsurers, both foreign and domestic.

The RCD monitors both the financial condition of reinsurers as well as the total reinsurance recoverable ceded to reinsurers, and sets limits with regard to the amount and type of exposure we are willing to take with reinsurers.

As part of these assessments, we attempt to identify whether a reinsurer is appropriately licensed, assess its financial capacity and liquidity, and evaluate the local economic and financial environment in which a foreign reinsurer operates.

The RCD reviews the nature of the risks ceded and the need for measures, including collateral to mitigate credit risk.

For example, in our treaty reinsurance contracts, we frequently include provisions that require a reinsurer to post collateral or use other measures to reduce exposure when a referenced event occurs.

Furthermore, we limit our unsecured exposure to reinsurers through the use of credit triggers such as insurer financial strength rating downgrades, declines in regulatory capital, or relevant RBC ratios fall below certain levels.

We also set maximum limits for reinsurance recoverable exposure, which in some cases is the recoverable amount plus an estimate of the maximum potential exposure from unexpected events for a reinsurer.

In addition, credit executives within ERM review reinsurer exposures and credit limits and approve reinsurer credit limits above specified levels.

Finally, even where we conclude that uncollateralized credit risk is acceptable, we require collateral from active reinsurance counterparties where it is necessary for our subsidiaries to recognize the reinsurance recoverable assets for statutory accounting purposes.

| | | | | | | |

| --- | --- | --- | --- | --- | --- | --- |

| 128 | | | AIG \| 2022 Form 10-K | | |

DAC Related to Unrealized Appreciation (Depreciation) of Investments An adjustment to DAC and Reserves for investment-oriented products, equal to the change in DAC and unearned revenue amortization that would have been recorded if fixed maturity securities available for sale at fair value had been sold at their stated aggregate fair value and the proceeds reinvested at current yields.

An adjustment to benefit reserves for investment-oriented products is also recognized to reflect the application of the benefit ratio to the accumulated assessments that would have been recorded if fixed maturity securities available for sale at fair value had been sold at their stated aggregate fair value and the proceeds reinvested at current yields.

For long-duration traditional products, significant unrealized appreciation of investments in a sustained low interest rate environment may cause additional future policy benefit liabilities to be recorded.

| AIG \| 2022 Form 10-K | | | 129 | | |

| 130 | | | AIG \| 2022 Form 10-K | | |

| ABS | | | Asset-Backed Securities | | | GMWB | | | Guaranteed Minimum Withdrawal Benefits | | |

| AUM | | | Assets Under Management | | | Moody's | | | Moody's Investors' Service Inc. | | |

| CMA | | | Capital Maintenance Agreement | | | ORR | | | Obligor Risk Ratings | | |

| CMBS | | | Commercial Mortgage-Backed Securities | | | OTC | | | Over-the-Counter | | |

| EGPs | | | Estimated Gross Profits | | | RMBS | | | Residential Mortgage-Backed Securities | | |

| ERM | | | Enterprise Risk Management | | | S&P | | | Standard & Poor's Financial Services LLC | | |

| FASB | | | Financial Accounting Standards Board | | | SEC | | | Securities and Exchange Commission | | |

| GAAP | | | Accounting Principles Generally Accepted in the | | | URR | | | Unearned Revenue Reserve | | |

| United States of America | | | | | | VIE | | | Variable Interest Entity | | |

| AIG \| 2022 Form 10-K | | | 131 | | |

ITEM 7A | Quantitative and Qualitative Disclosures About Market Risk

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| [Consolidated Balance Sheets at December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_4238) 2022] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_16) 2023] and [removed: 2021] [added: 2022] | | | | | | [removed: [138](#if9f982e359be4d0bb8fe661b922414ee_4238)] [added: [130](#i3bdcfcee27954b6aae3316a5ec2a29ce_16)] | | |

| [Consolidated Statements of Income (Loss) for the years ended December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_43) 2022, 2021] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_22) 2023, 2022] and [removed: 2020] [added: 2021] | | | | | | [removed: [139](#if9f982e359be4d0bb8fe661b922414ee_43)] [added: [131](#i3bdcfcee27954b6aae3316a5ec2a29ce_22)] | | |

| [Consolidated Statements of Comprehensive Income (Loss) for the years ended December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_46) 2022, 2021] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_25) 2023, 2022] and [removed: 2020] [added: 2021] | | | | | | [removed: [140](#if9f982e359be4d0bb8fe661b922414ee_46)] [added: [132](#i3bdcfcee27954b6aae3316a5ec2a29ce_25)] | | |

| [Consolidated Statements of Equity for the years ended December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_49) 2022, 2021] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_28) 2023, 2022] and [removed: 2020] [added: 2021] | | | | | | [removed: [141](#if9f982e359be4d0bb8fe661b922414ee_49)] [added: [133](#i3bdcfcee27954b6aae3316a5ec2a29ce_28)] | | |

| [Consolidated Statements of Cash Flows for the years ended December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_52) 2022, 2021] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_37) 2023, 2022] and [removed: 2020] [added: 2021] | | | | | | [removed: [142](#if9f982e359be4d0bb8fe661b922414ee_52)] [added: [134](#i3bdcfcee27954b6aae3316a5ec2a29ce_37)] | | |

| [removed: [Note 1](#if9f982e359be4d0bb8fe661b922414ee_55).] [added: Note 1.] | | | [Basis of [removed: Presentation](#if9f982e359be4d0bb8fe661b922414ee_55)] [added: Presentation](#i3bdcfcee27954b6aae3316a5ec2a29ce_40)] | | | [removed: [144](#if9f982e359be4d0bb8fe661b922414ee_55)] [added: [136](#i3bdcfcee27954b6aae3316a5ec2a29ce_40)] | | |

| [removed: [Note 2.](#if9f982e359be4d0bb8fe661b922414ee_67)] [added: Note 2.] | | | [Summary of Significant Accounting [removed: Policies](#if9f982e359be4d0bb8fe661b922414ee_67)] [added: Policies](#i3bdcfcee27954b6aae3316a5ec2a29ce_55)] | | | [removed: [147](#if9f982e359be4d0bb8fe661b922414ee_67)] [added: [138](#i3bdcfcee27954b6aae3316a5ec2a29ce_55)] | | |

| [removed: [Note 3](#if9f982e359be4d0bb8fe661b922414ee_82).] [added: Note 3.] | | | [Segment [removed: Information](#if9f982e359be4d0bb8fe661b922414ee_82)] [added: Information](#i3bdcfcee27954b6aae3316a5ec2a29ce_67)] | | | [removed: [151](#if9f982e359be4d0bb8fe661b922414ee_82)] [added: [144](#i3bdcfcee27954b6aae3316a5ec2a29ce_67)] | | |

| [removed: [Note 4.](#if9f982e359be4d0bb8fe661b922414ee_94)] [added: Note 5.] | | | [Fair Value [removed: Measurements](#if9f982e359be4d0bb8fe661b922414ee_94)] [added: Measurements](#i3bdcfcee27954b6aae3316a5ec2a29ce_73)] | | | [removed: [155](#if9f982e359be4d0bb8fe661b922414ee_94)] [added: [149](#i3bdcfcee27954b6aae3316a5ec2a29ce_73)] | | |

| [removed: [Note](#if9f982e359be4d0bb8fe661b922414ee_661) [8](#if9f982e359be4d0bb8fe661b922414ee_661)[.](#if9f982e359be4d0bb8fe661b922414ee_661)] [added: Note 9.] | | | [Deferred Policy Acquisition [removed: Costs](#if9f982e359be4d0bb8fe661b922414ee_661)] [added: Costs](#i3bdcfcee27954b6aae3316a5ec2a29ce_190)] | | | [removed: [194](#if9f982e359be4d0bb8fe661b922414ee_661)] [added: [186](#i3bdcfcee27954b6aae3316a5ec2a29ce_190)] | | |

| [removed: [Note](#if9f982e359be4d0bb8fe661b922414ee_220) [9](#if9f982e359be4d0bb8fe661b922414ee_220)[.](#if9f982e359be4d0bb8fe661b922414ee_220)] [added: Note 10.] | | | [Variable Interest [removed: Entities](#if9f982e359be4d0bb8fe661b922414ee_220)] [added: Entities](#i3bdcfcee27954b6aae3316a5ec2a29ce_196)] | | | [removed: [196](#if9f982e359be4d0bb8fe661b922414ee_220)] [added: [188](#i3bdcfcee27954b6aae3316a5ec2a29ce_196)] | | |

| [removed: [Note 11.](#if9f982e359be4d0bb8fe661b922414ee_226)] [added: Note 12.] | | | [Goodwill and Other Intangible [removed: Assets](#if9f982e359be4d0bb8fe661b922414ee_226)] [added: Assets](#i3bdcfcee27954b6aae3316a5ec2a29ce_802)] | | | [removed: [202](#if9f982e359be4d0bb8fe661b922414ee_226)] [added: [194](#i3bdcfcee27954b6aae3316a5ec2a29ce_802)] | | |

| [removed: [Note 1](#if9f982e359be4d0bb8fe661b922414ee_316)[5](#if9f982e359be4d0bb8fe661b922414ee_316)[.](#if9f982e359be4d0bb8fe661b922414ee_316)] [added: Note 17.] | | | [Contingencies, Commitments and [removed: Guarantees](#if9f982e359be4d0bb8fe661b922414ee_316)] [added: Guarantees](#i3bdcfcee27954b6aae3316a5ec2a29ce_244)] | | | [removed: [232](#if9f982e359be4d0bb8fe661b922414ee_316)] [added: [235](#i3bdcfcee27954b6aae3316a5ec2a29ce_244)] | | |

| [removed: [Note 1](#if9f982e359be4d0bb8fe661b922414ee_337)[7](#if9f982e359be4d0bb8fe661b922414ee_337)[.](#if9f982e359be4d0bb8fe661b922414ee_337)] [added: Note 19.] | | | [Earnings Per Common Share [removed: (EPS)](#if9f982e359be4d0bb8fe661b922414ee_337)] [added: (EPS)](#i3bdcfcee27954b6aae3316a5ec2a29ce_271)] | | | [removed: [238](#if9f982e359be4d0bb8fe661b922414ee_337)] [added: [241](#i3bdcfcee27954b6aae3316a5ec2a29ce_271)] | | |

| [removed: [Note 18.](#if9f982e359be4d0bb8fe661b922414ee_655)] [added: Note 20.] | | | [Statutory Financial Data and [removed: Restrictions](#if9f982e359be4d0bb8fe661b922414ee_655)] [added: Restrictions](#i3bdcfcee27954b6aae3316a5ec2a29ce_808)] | | | [removed: [239](#if9f982e359be4d0bb8fe661b922414ee_655)] [added: [242](#i3bdcfcee27954b6aae3316a5ec2a29ce_808)] | | |

| [SCHEDULE [removed: I](#if9f982e359be4d0bb8fe661b922414ee_865)] [added: I](#i3bdcfcee27954b6aae3316a5ec2a29ce_919)] | | | [Summary of Investments – Other than Investments in Related Parties at December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_865) 2022] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_919) 2023] | | | [removed: [263](#if9f982e359be4d0bb8fe661b922414ee_865)] [added: [269](#i3bdcfcee27954b6aae3316a5ec2a29ce_919)] | | |

| [SCHEDULE [removed: II](#if9f982e359be4d0bb8fe661b922414ee_868)] [added: II](#i3bdcfcee27954b6aae3316a5ec2a29ce_922)] | | | [Condensed Financial Information of Registrant at December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_868) 2022] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_922) 2023] and [removed: 2021] [added: 2022] and for the years ended December 31, [removed: 2022, 2021] [added: 2023, 2022] and [removed: 2020] [added: 2021] | | | [removed: [264](#if9f982e359be4d0bb8fe661b922414ee_868)] [added: [270](#i3bdcfcee27954b6aae3316a5ec2a29ce_922)] | | |

| [SCHEDULE [removed: III](#if9f982e359be4d0bb8fe661b922414ee_874)] [added: III](#i3bdcfcee27954b6aae3316a5ec2a29ce_928)] | | | [Supplementary Insurance Information at December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_874) 2022] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_928) 2023] and [removed: 2021] [added: 2022] and for the years ended December 31, [removed: 2022, 2021] [added: 2023, 2022] and [removed: 2020] [added: 2021] | | | [removed: [268](#if9f982e359be4d0bb8fe661b922414ee_874)] [added: [274](#i3bdcfcee27954b6aae3316a5ec2a29ce_928)] | | |

| [SCHEDULE [removed: IV](#if9f982e359be4d0bb8fe661b922414ee_877)] [added: IV](#i3bdcfcee27954b6aae3316a5ec2a29ce_931)] | | | [removed: [Reinsurance](#if9f982e359be4d0bb8fe661b922414ee_877)] [added: [Reinsurance](#i3bdcfcee27954b6aae3316a5ec2a29ce_931)] [for the years [removed: ended](#if9f982e359be4d0bb8fe661b922414ee_880)] [added: ended](#i3bdcfcee27954b6aae3316a5ec2a29ce_934)] [December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_877) 2022, 2021] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_931) 2023, 2022] and [removed: 2020] [added: 2021] | | | [removed: [269](#if9f982e359be4d0bb8fe661b922414ee_877)] [added: [275](#i3bdcfcee27954b6aae3316a5ec2a29ce_931)] | | |

| [SCHEDULE [removed: V](#if9f982e359be4d0bb8fe661b922414ee_880)] [added: V](#i3bdcfcee27954b6aae3316a5ec2a29ce_934)] | | | [Valuation and Qualifying Accounts for the years ended December [removed: 31,](#if9f982e359be4d0bb8fe661b922414ee_880) 2022, 2021] [added: 31,](#i3bdcfcee27954b6aae3316a5ec2a29ce_934) 2023, 2022] and [removed: 2020] [added: 2021] | | | [removed: [269](#if9f982e359be4d0bb8fe661b922414ee_880)] [added: [275](#i3bdcfcee27954b6aae3316a5ec2a29ce_934)] | | |

We have audited the accompanying consolidated balance sheets of American International Group, Inc. and its subsidiaries (the "Company") as of December 31, [removed: 2022] [added: 2023] and [removed: 2021,] [added: 2022,] and the related consolidated statements of income (loss), of comprehensive income (loss), of equity and of cash flows for each of the three years in the period ended December 31, [removed: 2022,] [added: 2023,] including the related notes and financial statement schedules listed in the accompanying index (collectively referred to as the “consolidated financial statements”).

We also have audited the Company's internal control over financial reporting as of December 31, [removed: 2022,] [added: 2023,] based on criteria established in *Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)*.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, [removed: 2022] [added: 2023] and [removed: 2021,] [added: 2022,] and the results of its operations and its cash flows for each of the three years in the period ended December 31, [removed: 2022] [added: 2023] in conformity with accounting principles generally accepted in the United States of America.

Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, [removed: 2022,] [added: 2023,] based on criteria established in *Internal Control - Integrated Framework (2013) issued by the COSO*.

As described in Note [removed: 4] [added: 5] to the consolidated financial statements, as of December 31, [removed: 2022,] [added: 2023,] the total fair value of the Company’s level 3 fixed maturity securities, including bonds available for sale and other bond securities, was [removed: $26.4] [added: $28.4] billion, comprised of residential mortgage backed securities, commercial mortgage backed securities, collateralized loan obligations, other asset-backed securities, and fixed maturity securities issued by corporations (including private placements), states, municipalities, and other governmental agencies.

These procedures also included, among others, obtaining independent [removed: third party] [added: third-party] vendor pricing, where available, and the involvement of professionals with specialized skill and knowledge to assist in developing an independent range of prices for a sample of securities.

Developing the independent range of prices involved testing the completeness and accuracy of data provided by management on a sample basis and evaluating [added: the reasonableness of] management’s assumptions noted above.

The independent [removed: third party] [added: third-party] vendor pricing and the independently developed ranges were compared to management’s recorded fair value estimates.

As described in Note [removed: 12] [added: 13] to the consolidated financial statements, loss reserves represent the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and loss adjustment expenses, less applicable discount.

As of December 31, [removed: 2022,] [added: 2023,] the Company’s net liability for unpaid losses and loss adjustment expenses was [removed: $43.1] [added: $40.1] billion.

As described in Note [removed: 12] [added: 13] to the consolidated financial statements, management uses a combination of actuarial methods to project ultimate losses for both long-tail and short-tail exposures.

*Valuation of [removed: Embedded Derivatives for] [added: Market Risk Benefits (MRBs) on Individual Retirement] Variable [removed: Annuity] and Fixed Index Annuity [removed: Products] [added: contracts] and [removed: Valuation] [added: the valuation] of [removed: Certain] [added: Embedded Derivatives (EDs) for certain] Guaranteed Benefit Features [removed: for Universal Life Products*][added: on Fixed Index Annuity contracts*]

[removed: The] [added: As disclosed by management, the] fair value of [removed: embedded derivatives] [added: MRBs] contained in certain variable [removed: annuity] and fixed index annuity contracts [added: and the associated EDs for certain guaranteed features on fixed index annuities] is measured based on policyholder behavior and capital market assumptions related to projected [added: cash flows over the expected lives of the contracts.]

The [removed: policyholder behavior] [added: projected cash flows incorporate best estimate] assumptions for [removed: these liabilities include mortality,] [added: policyholder behavior (including] lapses, [removed: withdrawals,] [added: withdrawals] and benefit [removed: utilization,] [added: utilization),] along with an explicit risk margin to reflect a market participant’s estimates of [added: the fair value of] projected cash [removed: flows.][added: flows and policyholder behavior.]

[removed: The] [added: Estimating the underlying cash flows involves judgments regarding] capital market assumptions related to [removed: the embedded derivatives for variable annuity contracts involve judgments regarding] expected market rates of return, market volatility, credit spreads, correlations of certain market variables, fund [removed: performance,] [added: performance] and discount rates.

The principal considerations for our determination that performing procedures relating to the valuation of [removed: embedded derivatives for] [added: MRBs on Individual Retirement] variable [removed: annuity] and fixed index annuity [removed: products] [added: contracts] and [removed: valuation of] [added: EDs for] certain guaranteed benefit features [removed: for universal life products] [added: on fixed index contracts] is a critical audit matter are (i) the significant judgment by management in developing [removed: the aforementioned] policyholder behavior [removed: assumptions,] [added: assumptions relating to the individual retirement variable and fixed index annuity lapses, withdrawals and benefit utilization, along with an explicit risk margin,] as well as [removed: long-term equity volatilities and option budget assumptions, which in turn led] [added: capital market assumptions related] to [added: market volatility, used in the valuation of the MRBs and EDs for certain guaranteed benefit features on fixed index contracts (collectively the “significant assumptions”), (ii)] a high degree of auditor [added: judgment,] subjectivity and [removed: judgment] [added: effort] in performing [removed: the audit] procedures [removed: related to the significant assumptions used in the estimate, (ii) the significant audit effort] and [removed: judgment in] evaluating [removed: the audit evidence relating to the] [added: management’s] significant [removed: assumptions used by management in the valuation of the embedded derivatives and additional policyholder liabilities,] [added: assumptions,] and (iii) the audit effort involved [added: in] the use of professionals with specialized skill and knowledge.

These procedures included testing the effectiveness of controls relating to the development of assumptions used in the valuation of [removed: embedded derivatives for] [added: MRBs on Individual Retirement] variable [removed: annuity] and fixed index annuity [removed: products] [added: contracts] and [removed: valuation of] [added: the EDs for] certain guaranteed benefit features [removed: for universal life products.][added: on fixed index contracts.]

The principal considerations for our determination that performing procedures relating to the [removed: valuation] [added: adoption] of [removed: DAC for universal life and individual retirement variable annuity products] [added: the LDTI standard] is a critical audit matter are (i) the significant judgment by management [removed: to determine] [added: when adopting] the [removed: policyholder behavior assumptions related to mortality, lapse, benefit utilization,] [added: LDTI standard] and [removed: premium persistency, which in turn led to] [added: determining the adoption adjustments, (ii)] a high degree of auditor [added: judgment,] subjectivity and [removed: judgment] [added: effort] in performing [removed: the audit] procedures [removed: related to the significant assumptions used in the estimate, (ii) the significant audit effort] and [removed: judgment in] evaluating [removed: the audit evidence relating to] management’s [removed: policyholder behavior assumptions, and (iii) the audit effort involved] [added: assumptions related to (a)] the [removed: use of professionals with specialized skill and knowledge.]

| 124 | | | AIG \| 2023 Form 10-K | | |

| Note 4. | | | [Held-For-Sale Classification](#i3bdcfcee27954b6aae3316a5ec2a29ce_70) | | | [148](#i3bdcfcee27954b6aae3316a5ec2a29ce_70) | | |

| Note 6. | | | [Investments](#i3bdcfcee27954b6aae3316a5ec2a29ce_121) | | | [168](#i3bdcfcee27954b6aae3316a5ec2a29ce_121) | | |

| Note 7. | | | [Lending Activities](#i3bdcfcee27954b6aae3316a5ec2a29ce_166) | | | [177](#i3bdcfcee27954b6aae3316a5ec2a29ce_166) | | |

| Note 8. | | | [Reinsurance](#i3bdcfcee27954b6aae3316a5ec2a29ce_178) | | | [181](#i3bdcfcee27954b6aae3316a5ec2a29ce_178) | | |

| Note 11. | | | [Derivatives and Hedge Accounting](#i3bdcfcee27954b6aae3316a5ec2a29ce_211) | | | [191](#i3bdcfcee27954b6aae3316a5ec2a29ce_211) | | |

| Note 13. | | | [Insurance Liabilities](#i3bdcfcee27954b6aae3316a5ec2a29ce_220) | | | [195](#i3bdcfcee27954b6aae3316a5ec2a29ce_220) | | |

| Note 14. | | | [Market Risk Benefits](#i3bdcfcee27954b6aae3316a5ec2a29ce_238) | | | [229](#i3bdcfcee27954b6aae3316a5ec2a29ce_238) | | |

| Note 15. | | | [Separate Account Assets and Liabilities](#i3bdcfcee27954b6aae3316a5ec2a29ce_241) | | | [231](#i3bdcfcee27954b6aae3316a5ec2a29ce_241) | | |

| Note 16. | | | [Debt](#i3bdcfcee27954b6aae3316a5ec2a29ce_586) | | | [233](#i3bdcfcee27954b6aae3316a5ec2a29ce_586) | | |

| Note 18. | | | [Equity](#i3bdcfcee27954b6aae3316a5ec2a29ce_247) | | | [237](#i3bdcfcee27954b6aae3316a5ec2a29ce_247) | | |

| Note 21. | | | [Share-Based Compensation Plans](#i3bdcfcee27954b6aae3316a5ec2a29ce_811) | | | [244](#i3bdcfcee27954b6aae3316a5ec2a29ce_811) | | |

| Note 22. | | | [Employee Benefits](#i3bdcfcee27954b6aae3316a5ec2a29ce_814) | | | [247](#i3bdcfcee27954b6aae3316a5ec2a29ce_814) | | |

| Note 23. | | | [Income Taxes](#i3bdcfcee27954b6aae3316a5ec2a29ce_277) | | | [254](#i3bdcfcee27954b6aae3316a5ec2a29ce_277) | | |

| | | | | | | | | |

| | | | | | | | | |

| AIG \| 2023 Form 10-K | | | 125 | | |

*Change in Accounting Principle*

As discussed in Note 1 to the consolidated financial statements, the Company changed the manner in which it accounts for long-duration insurance contracts in 2023.

| 126 | | | AIG \| 2023 Form 10-K | | |

| AIG \| 2023 Form 10-K | | | 127 | | |

As described in Notes 5, 13, and 14 to the consolidated financial statements, the total fair value of the Individual Retirement MRB assets and liabilities were $740 million and $5,225 million, respectively, and the fair value of the EDs for certain guaranteed features on fixed index annuity contracts was $1.5 billion on December 31, 2023.

Certain variable annuity and fixed index annuity contracts contain MRBs related to guaranteed benefit features that management separates from the host contracts and accounts for at fair value.

Estimating the underlying cash flows for these features also involves judgments regarding the capital market assumptions, including expected market rates of return, market volatility, credit spreads, correlations of certain market variables, fund performance and discount rates.

The guaranteed product features in the fixed index annuity contracts that are not MRBs and are accounted for as EDs utilize option pricing models to estimate fair value, taking into account the capital market assumptions for future index growth rates, volatility of the index, future interest rates, and the Company’s ability to adjust the participation rate and the cap on fixed index credited rates in light of market conditions and policyholder behavior assumptions.

These procedures also included, among others, (i) testing management’s process for developing the valuation of the MRBs and EDs for certain guaranteed benefit features on fixed index contracts, (ii) testing, on a sample basis, the completeness and accuracy of data used by management to develop the significant assumptions, (iii) testing that the significant assumptions are accurately reflected in the models, and (iv) the involvement of professionals with specialized skill and knowledge to assist in evaluating the reasonableness of management’s judgments used in developing the significant assumptions based on industry knowledge and data.

*Adoption of the New Accounting Standard for Long-Duration Contracts*

As described above and in Notes 2, 5, 13, and 14 to the consolidated financial statements, the Company has adopted the new accounting standard relating to targeted improvements to the accounting for long-duration contracts (the “LDTI standard”).

The Company adopted the LDTI standard on January 1, 2023 with a transition date of January 1, 2021, using the modified retrospective basis, except for market risk benefits (MRBs) which used a full retrospective basis.

The impact of the adoption of the LDTI standard resulted in a net decrease to beginning total equity of $1,264 million as of January 1, 2021.

The impact of adopting the LDTI standard also resulted in adjustments to the Company’s previously reported consolidated financial statements as of December 31, 2022 and for each of the two years in the period ended December 31, 2022.

These adjustments include a $2 million decrease and $983 million increase to net income for the years ended December 31, 2022 and 2021, respectively, and a $1,219 million increase to total equity as of December 31, 2022.

The adoption adjustments include changes related to MRBs and changes to the discount rate used to measure the liability for future policy benefits.

The method for constructing and applying the locked-in discount rate assumptions on newly issued business is determined based on factors such as product characteristics and the expected timing of cash flows.

Management employs conversion and interpolation methodologies when necessary.

The current discount rate assumption for the liability for future policy benefits, which is derived from market observable yields on upper medium-grade fixed income instruments, is updated quarterly.

The fair value of MRBs incorporate best estimate assumptions for policyholder behavior (including lapses, withdrawals and benefit utilization), along with an explicit risk margin to reflect a market participant’s estimates of the fair value of projected cash flows and policyholder behavior.

The portion of fees attributable to the fair value of expected benefit payments is included within the fair value measurement of these MRBs.

The guaranteed product features in the fixed index annuity contracts that are not MRBs and are accounted for as EDs utilize option pricing models to estimate fair value, taking into account the capital market assumptions for future index growth rates, volatility of the index, future interest rates, and the Company’s ability to adjust the participation rate and the cap on fixed index credited rates in light of market conditions and policyholder behavior assumptions.

In connection with the adoption of the LDTI standard, as of December 31, 2022, the Company recorded the fair value of market risk benefit assets and market risk benefit liabilities of $661 million and $4,305 million, respectively, which includes MRBs related to individual retirement variable and fixed index annuities, and the fair value of EDs related to the fixed index annuity contracts with guaranteed product features included in policyholder contract deposits of $1.1 billion.

| 132 | | | AIG \| 2022 Form 10-K | | |

| [Note 5.](#if9f982e359be4d0bb8fe661b922414ee_151) | | | [Investments](#if9f982e359be4d0bb8fe661b922414ee_151) | | | [174](#if9f982e359be4d0bb8fe661b922414ee_151) | | |

| [Note 6.](#if9f982e359be4d0bb8fe661b922414ee_199) | | | [Lending Activities](#if9f982e359be4d0bb8fe661b922414ee_199) | | | [185](#if9f982e359be4d0bb8fe661b922414ee_199) | | |

| [Note 7.](#if9f982e359be4d0bb8fe661b922414ee_208) | | | [Reinsurance](#if9f982e359be4d0bb8fe661b922414ee_208) | | | [189](#if9f982e359be4d0bb8fe661b922414ee_208) | | |

| [Note 10.](#if9f982e359be4d0bb8fe661b922414ee_223) | | | [Derivatives and Hedge Accounting](#if9f982e359be4d0bb8fe661b922414ee_223) | | | [198](#if9f982e359be4d0bb8fe661b922414ee_223) | | |

| [Note 1](#if9f982e359be4d0bb8fe661b922414ee_229)[2](#if9f982e359be4d0bb8fe661b922414ee_229)[.](#if9f982e359be4d0bb8fe661b922414ee_229) | | | [Insurance Liabilities](#if9f982e359be4d0bb8fe661b922414ee_229) | | | [203](#if9f982e359be4d0bb8fe661b922414ee_229) | | |

| [Note 13.](#if9f982e359be4d0bb8fe661b922414ee_637) | | | [Variable Life and Annuity Contracts](#if9f982e359be4d0bb8fe661b922414ee_637) | | | [227](#if9f982e359be4d0bb8fe661b922414ee_637) | | |

| [Note 14.](#if9f982e359be4d0bb8fe661b922414ee_643) | | | [Debt](#if9f982e359be4d0bb8fe661b922414ee_643) | | | [229](#if9f982e359be4d0bb8fe661b922414ee_643) | | |

| [Note 1](#if9f982e359be4d0bb8fe661b922414ee_322)[6](#if9f982e359be4d0bb8fe661b922414ee_322)[.](#if9f982e359be4d0bb8fe661b922414ee_322) | | | [Equity](#if9f982e359be4d0bb8fe661b922414ee_322) | | | [234](#if9f982e359be4d0bb8fe661b922414ee_322) | | |

| [Note 19.](#if9f982e359be4d0bb8fe661b922414ee_658) | | | [Share-Based Compensation Plans](#if9f982e359be4d0bb8fe661b922414ee_658) | | | [241](#if9f982e359be4d0bb8fe661b922414ee_658) | | |

| [Note](#if9f982e359be4d0bb8fe661b922414ee_340) [20](#if9f982e359be4d0bb8fe661b922414ee_340)[.](#if9f982e359be4d0bb8fe661b922414ee_340) | | | [Employee Benefits](#if9f982e359be4d0bb8fe661b922414ee_340) | | | [244](#if9f982e359be4d0bb8fe661b922414ee_340) | | |

| [Note](#if9f982e359be4d0bb8fe661b922414ee_346) [2](#if9f982e359be4d0bb8fe661b922414ee_346)[1](#if9f982e359be4d0bb8fe661b922414ee_346)[.](#if9f982e359be4d0bb8fe661b922414ee_346) | | | [Income Taxes](#if9f982e359be4d0bb8fe661b922414ee_346) | | | [251](#if9f982e359be4d0bb8fe661b922414ee_346) | | |

| AIG \| 2022 Form 10-K | | | 133 | | |

| 134 | | | AIG \| 2022 Form 10-K | | |

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

As described in Notes 4 and 13 to the consolidated financial statements, certain fixed index annuity and variable annuity contracts contain embedded derivatives that are bifurcated from the host contracts and accounted for separately at fair value in policyholder contract deposits.

As of December 31, 2022, the fair value of these embedded derivatives was $5.7 billion and $0.7 billion for fixed index annuity and variable annuities with guaranteed minimum withdrawal benefits, respectively.

| AIG \| 2022 Form 10-K | | | 135 | | |

cash flows over the expected lives of the contracts.

Estimates of future policyholder behavior assumptions are subjective and based primarily on the Company’s historical experience.

Unobservable inputs used for valuing the embedded derivative include long-term equity volatilities which represent the volatility beyond the period for which observable equity volatilities are available.

With respect to embedded derivatives for fixed index annuity contracts, option pricing models are used to estimate fair value, taking into account the capital market assumptions.

Such models use option budget assumptions which estimate the expected long-term cost of options used to hedge exposures associated with equity price changes.

The option budget determines the future costs of the options, which impacts the growth in account value and the valuation of embedded derivatives.

Additional policyholder liabilities are also established for universal life policies with secondary guarantees, as well as other universal life policies for which profits followed by losses are expected at contract inception.

As of December 31, 2022, the liability for universal life secondary guarantees and similar features was $2.8 billion, which is included within future policy benefits.

The policyholder behavior assumptions for these liabilities include mortality, lapses and premium persistency.

The capital market assumptions used for the liability for universal life secondary guarantees include discount rates and net earned rates.

These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in performing an evaluation of the appropriateness of management’s methodology and the reasonableness of management’s judgments used in developing policyholder behavior, as well as long-term volatilities and option budget assumptions used in estimating the valuation of guaranteed benefit features.

These procedures considered the consistency of the assumptions across products, in relation to prior periods, and in relation to management’s historical experience or observed industry practice, and the continued appropriateness of unchanged assumptions.

Procedures were performed to test the completeness and accuracy of data used by management on a sample basis.

*Valuation of Deferred Policy Acquisition Costs for Universal Life and Individual Retirement Variable Annuity Products*

As described in Note 8 to the consolidated financial statements, as of December 31, 2022, a portion of the $11 billion deferred policy acquisition costs (DAC) for investment-oriented products are associated with universal life and individual retirement variable annuity products.

Policy acquisition costs and policy issuance costs related to investment-oriented products are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts.

Estimated gross profits are affected by a number of factors, including current and expected interest rates, net investment income and spreads, net realized gains and losses, fees, surrender rates, mortality experience, policyholder behavior experience, equity market returns, and volatility.

If the assumptions used for estimated gross profits change, DAC is recalculated using the new assumptions, including actuarial assumptions related to mortality, lapse, benefit utilization, and premium persistency, and any resulting adjustment is included in income.

DAC for investment-oriented products is reviewed by management for recoverability, which involves estimating the future profitability of the current business.

If actual profitability is substantially lower than previously estimated profitability, DAC may be subject to an impairment charge.

These procedures included testing the effectiveness of controls relating to the amortization and recoverability of DAC for universal life and individual retirement variable annuity products, including controls over the development of significant assumptions.

These procedures also included, among others, the involvement of professionals with specialized skill and knowledge to assist in evaluating the appropriateness of management’s methodology and the reasonableness of management’s policyholder behavior assumptions related to mortality, lapse, benefit utilization, and premium persistency, which are used in the calculation of estimated gross profits.

[removed: PRIVACY, DATA PROTECTION AND CYBERSECURITY][added: Business – Regulation – Privacy, Data Protection, Cybersecurity and Artificial Intelligence Requirements, and Part II, Item 7.]

| [added: 12 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 11 | | |]

[removed: ITEM 1 | Business][added: Business – Regulation, Part II, Item 7.]

The EEA and the UK have also taken steps to regulate the use of data and algorithms used for the purpose of [removed: artificial intelligence] [added: AI] and automated decision-making.

European countries, and supranational political organizations like the EU and the Council of Europe, are expected to [removed: take] [added: continue taking] an active role in regulating AI in ways that may impact the insurance industry in the future.

[removed: Insurance] [added: In addition, state insurance] regulators in the United States have [removed: also shown interest] [added: issued and will continue to consider regulations or proposed guidelines] in the use of external data, algorithms and [removed: artificial intelligence] [added: AI] in insurance practices, including underwriting, marketing, and claims practices.

[removed: Climate Change and ESG][added: CLIMATE CHANGE]

In recent years, [added: federal- and state-level lawmakers and] regulators in the United States and in other major countries in which we operate have increased their scrutiny on financial institutions’ and other companies’ [added: governance,] risk oversight, [removed: disclosures] [added: disclosures, plans, policies] and practices in connection with climate [removed: change and other Environmental, Social and Governance (ESG) issues.][added: change.]

Throughout [removed: 2022,] [added: 2023,] there have been active and significant regulatory developments on these issues in the form of newly proposed, issued or implemented [added: laws,] rules, [removed: regulations] [added: regulations, guidance] and frameworks regarding climate change [removed: and other ESG issues] that impose, or will impose [removed: once] [added: if and when] effective, new [removed: requirements, including] requirements [removed: related to climate change-related] [added: and expectations, including in connection with climate-related] governance, risk management, disclosures, stress testing and scenario [removed: planning.][added: analysis.]

[removed: For example, in March 2022,] [added: In addition,] the SEC [removed: released] [added: has] proposed rule changes on climate-related disclosure.

The proposed rule [removed: changes] would require registrants, including public issuers such as us, to include certain climate-related disclosures in registration statements and periodic reports.

The [removed: required information about] [added: proposed] climate-related [removed: risks also] [added: disclosures] would [added: also] include disclosure of a registrant’s greenhouse gas emissions (including Scope 3 [removed: emissions),] [added: emissions) and attestation thereof, as well as] information about climate-related [removed: targets and] [added: targets,] goals, and transition plan, if [removed: any, and would require extensive attestation requirements.][added: any.]

The principal U.S. regulators of these operations include the SEC, [removed: FINRA,] [added: Financial Industry Regulatory Authority (FINRA),] Commodity Futures Trading Commission (CFTC), Municipal Securities Rulemaking Board, state securities commissions, state insurance departments and the Department of Labor (DOL).

In addition, the offering of these products may involve filing and other requirements under the securities laws of the states and other [added: U.S.] jurisdictions where [removed: offered, including the District of Columbia and Puerto Rico.][added: offered.]

| [removed: 12 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 13 | | |]

- [removed: DOL Fiduciary Rule - In June 2020,] [added: On October 31, 2023,] the DOL [removed: issued final guidance on] [added: announced proposed changes to] the [added: regulatory] definition of [removed: a “fiduciary”] [added: an investment advice fiduciary] for purposes of transactions with ERISA qualified plans, related plan participants and [removed: Individual Retirement Accounts (IRAs).][added: IRAs.]

[removed: - SEC] [added: *•*SEC] Best Interest Regulation [removed: - On June 30,] [added: *–* In] 2020, Regulation Best Interest (Regulation BI), which establishes new rules regarding the standard of care a broker must meet when making a recommendation to a retail customer in connection with the sale of a security or other covered recommendation, and Form CRS, which requires enhanced disclosure by broker-dealers and investment advisers regarding client relationships and certain conflicts of interest issues, became effective.

Both had been adopted by the SEC in June 2019 as part of a package of final rulemakings and interpretations, at the same time as the SEC issued two interpretations under the [removed: Investment] Advisers [removed: Act of 1940.][added: Act.]

These two SEC interpretations became effective in [removed: July] 2019.

| [added: 14 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 13 | | |]

[removed: - FINRA] [added: *•*FINRA] Standard of Care Development [removed: - Effective June 30,] [added: *–* In] 2020, [removed: The Financial Industry Regulatory Authority (FINRA)] [added: FINRA] Rule 2111 was amended to provide that FINRA’s suitability requirements do not apply to recommendations that are subject to Regulation BI.

As amended, Regulation 187 requires [added: life and annuity] producers to act in their client’s best interest when making point-of-sale and in-force recommendations, and to deliver to the client the written basis for the recommendation, as well as the facts and analysis to support the recommendation.

We make available free of charge, through the Investors section of our corporate website, the reports that we file or furnish with the [removed: Securities and Exchange Commission (SEC)] [added: 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.

| [removed: 14 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 15 | | |]

- Our consolidated results of operations, liquidity, financial condition and ratings are subject to the effects of natural and man-made catastrophic [removed: events.][added: events as well as mass torts.]

- A downgrade by one or more of the rating agencies in the Insurer Financial Strength ratings of our insurance [removed: or reinsurance] 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.

| [added: 16 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 15 | | |]

- Our risk management [removed: policies] [added: 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.

- Increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders regarding environmental, social and governance [removed: (ESG) matters] [added: matters, including governmental responses to such matters,] may adversely affect our reputation or otherwise adversely impact our business and results of operations.

[removed: -] COVID-19 [added: (including variants)] has adversely affected and may continue to adversely affect our global business, results of operations, financial condition and [removed: liquidity, and its ultimate impact will depend on future developments that are uncertain and cannot be predicted.][added: liquidity.]

We may not be able to [removed: retain and] attract [added: and retain the] key employees and other highly skilled employees we need to support our businesses.

- Changes in accounting principles and financial reporting requirements [removed: will] [added: may] impact our consolidated results of operations and financial condition.

| [removed: 16 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 17 | | |]

Weaknesses in economic conditions, including a recessionary environment, poor capital markets performance and market volatility have in the past [removed: led,] [added: led to,] and may in the future lead to, among other consequences, a poor operating environment, erosion of consumer and investor confidence, reduced business volumes, deteriorating liquidity, declines in asset valuations and impacts on policyholder behavior that could influence reserve valuations.

[removed: Further,] [added: In addition,] if our investment managers, including Blackstone [added: Inc. (Blackstone)] and BlackRock, [added: Inc. (BlackRock),] or any other [removed: asset] [added: investment] managers we engage, fail to react appropriately to difficult market or economic conditions, our investment portfolio could incur material losses.

Key ways in which [added: we] have in the past been, and could in the future be, negatively affected by economic conditions include:

- increases in costs associated with third-party reinsurance, or decreased ability to obtain reinsurance on acceptable terms; [removed: and]

- the increased likelihood of, or increased magnitude of, asset impairments caused by market [removed: fluctuations] [added: fluctuations,] deterioration in collateral values or credit deterioration of [removed: borrowers.][added: borrowers; and]

Adverse economic conditions may result from a variety of factors including domestic and global economic and political developments, including [removed: rising] [added: elevated] interest rates, plateauing or decreasing economic growth and business activity, recessions, [added: social inflation,] inflationary or deflationary pressures in developed economies, including the United States, civil unrest, pandemics, [removed: including disruptions caused by COVID-19,] geopolitical tensions, foreign investment restrictions, or military action, such as the armed conflict between Ukraine and Russia and corresponding sanctions imposed by the United States and other [removed: countries,] [added: countries or the conflict in Israel] and [added: the surrounding areas, and] new or evolving legal and regulatory requirements on business investment, hiring, migration, labor supply and global supply chains.

These and other market, economic, regulatory and political factors, including the [removed: impact] [added: prolonged effects] of [added: elevated inflation, turmoil in the global banking sector and related macroeconomic uncertainty, and domestic and international political tension, including] any [removed: new or prolonged] [added: potential U.S.] government [removed: financial stimulus package or the expiration or suspension thereof,] [added: shutdown,] have [added: had] and could [added: continue to] have a material adverse effect on our businesses, results of operations, financial condition, capital and liquidity in many ways, including:

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.

For example, Colorado and New York have adopted regulations or guidance with respect to the use of external consumer data and information sources in underwriting for life insurance, including the use of algorithms and predictive models.

In December 2023, the NAIC adopted a model bulletin on the use of AI by insurers that sets forth governance, risk management and other requirements that insurers using AI are expected to establish.

On December 9, 2023, the European Parliament and European Council reached a provisional agreement on the European Union Artificial Intelligence Act, which, once formally adopted, will broadly regulate the use of AI within the European Union.

Regulators in several jurisdictions are considering the so-called protection gap as it relates to climate – which is the view that populations are under-insured or that there is insufficient coverage to protect policyholders against the risks associated with climate change.

The proposed changes also included significant changes to existing prohibited transactions exemptions (PTEs) relating to such advice, including PTE 84-24 and PTE 2020-02.

The DOL’s proposed regulation changes would significantly increase the number of recommendations that would be considered fiduciary, including (but not limited to) retirement plan rollover recommendations.

The DOL proposal established a 60-day comment period through January 2, 2024.

Final DOL guidance is expected in 2024.

In December 2022, comprehensive retirement legislation entitled "SECURE 2.0 Act of 2022" (SECURE 2.0) was signed into law.

SECURE 2.0 included many provisions affecting qualified contracts, many of which became effective in 2023, and additional ones that become effective in 2024 or subsequent years.

Some of the SECURE 2.0 provisions that became effective in 2023 include, among others: an increase in the age at which required minimum distributions generally must commence to age 73 from the previous age of 72; elimination of the first day of the month requirement for governmental Section 457(b) plans; and optional treatment of employer contributions as Roth sources.

We are implementing new processes and procedures, where needed, designed to comply with the new requirements.

- Our restructuring initiatives may not yield our expected reductions in expenses and improvements in operational and organizational efficiency.

- increased challenges to insurance policy terms and conditions, such as standard exclusions;

- reduced premium and deposits.

Changes in interest rates have materially and adversely affected and may continue to materially and adversely affect our profitability.

- loss from reduced fee income, and changes in the fair values of Market Risk Benefits (MRBs) and embedded derivatives;

We make assumptions regarding mortality, morbidity, discount rates, persistency and policyholder behavior at various points, including at the time of issuance and in subsequent reporting periods.

An increase in the valuation of the liability could result to the extent emerging and actual experience deviates from these assumptions.

Reinsurance may be unavailable or too expensive relative to its benefit, and may not be adequate to protect us against losses.

The realization of these risks may materially and adversely affect our business, results of operations and financial condition.

*For information regarding the effects of the COVID-19 pandemic on our business, see Business and Operations – “An epidemic, pandemic or other health crisis could materially and adversely affect our business results of operations, financial condition and liquidity.

ceding company to pay the reinsurer (i.e., Fortitude Re) at a later date.

The historical performance of Blackstone, BlackRock or any other investment manager we engage should not be considered as indicative of the future results of our investment portfolio, our future results or any returns expected on AIG Common Stock.

In addition, liquid fixed income assets associated with the Fortitude Re funds withheld asset portfolio were separately transferred to BlackRock for management.

Additionally, from time to time, we consider and engage in discussions with external asset managers about managing other assets in our investment portfolio that are currently managed by us.

If we increase the amount of assets in our investment portfolio managed by external asset managers, it may lead to an increase in investment advisory fees payable by us.

In addition, we may become more reliant on our external asset managers, and such increased dependence 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.

AIG 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.

Since September of 2022 when AIG closed on the initial public offering Corebridge’s common stock, we have been selling down our ownership interest.

As of December 31, 2023, AIG holds 52.2 percent of Corebridge common stock.

Pricing for our products is subject to our ability to adequately assess risks and estimate related losses.

We monitor and manage pricing and sales to achieve target returns on new

Additionally, the property and casualty insurance markets are historically cyclical and experience periods of relatively strong premium rates followed by periods of increased competition that push premium rates down.

Guarantees within certain of our Life and Retirement products may increase the volatility of our results.

We employ a capital markets hedging strategy to partially offset the economic impacts of movements in equity, interest rate and credit markets, however, our hedging strategy may not effectively offset movements in our GAAP equity or our statutory surplus and capital requirements and may otherwise be insufficient in relation to our obligations.

Furthermore, we are subject to the risk that changes in policyholder behavior or actual levels of mortality/longevity as compared to assumptions in pricing and reserving, combined with adverse market events, could produce losses not addressed by the risk management techniques employed.

These factors, individually or collectively, may have a material adverse effect on our business, financial condition, results of operations or liquidity including our ability to receive dividends from our operating companies.

Changes in interest rates result in changes to the fair value liability.

concentrations in individual insurers.

In light of the IAIS adoption of the Holistic Framework, the FSB decided in December 2022 to discontinue the annual identification of Global Systemically Important Insurers in favor of instead applying the Holistic Framework to inform the FSB’s consideration of systemic risk in insurance.

As part of ComFrame, the IAIS is developing a risk-based global insurance capital standard (ICS) applicable to IAIGs, with the purpose of creating a common language for supervisory discussions of group solvency of IAIGs.

The IAIS has adopted ICS Version 2.0 for a five-year monitoring phase, with an initial phase that commenced January 2020.

During the initial phase, ICS Version 2.0 is used for confidential reporting to group-wide supervisors and discussion in supervisory colleges, but will not trigger supervisory action.

At the conclusion of the five-year monitoring period, the IAIS has agreed to a second phase of implementation, whereby the ICS will be applied as a group-wide prescribed capital requirement, defined as a solvency control level above which the supervisor does not intervene on capital adequacy grounds.

However, in recognition that the United States and other interested jurisdictions are developing an alternative approach to a group capital calculation that utilizes an aggregation methodology of available capital and required capital of all insurance group members (Aggregation Method or AM), the IAIS is assessing whether the AM provides comparable outcomes to ICS Version 2.0, including by collecting data from interested jurisdictions.

The IAIS aims to be in a position by the end of the monitoring phase to assess whether the AM provides substantially the same outcome as the ICS, in which case it will be considered an outcome-equivalent approach to the ICS.

The standards issued by the FSB and/or the IAIS are not binding on the United States or other jurisdictions around the world unless and until the appropriate local governmental bodies or regulators adopt laws or regulations implementing such standards.

We are subject to various laws and regulations that require financial institutions and other businesses to protect and safeguard personal and other sensitive information and provide notice of their practices relating to the collection, disclosure and other processing of personal information.

We also are subject to U.S. federal and state laws and regulations requiring notification to affected individuals and regulators of a data breach(es).

Below we highlight a few key privacy, data protection and cybersecurity laws and regulations.

In October 2017, the NAIC adopted the Insurance Data Security Model Law (NAIC Data Security Model Law), which, among other things, requires insurers, insurance producers and other entities required to be licensed under state insurance laws to develop and maintain a written information security program, conduct risk assessments, and oversee the data security practices of third-party service providers.

As of December 31, 2022, more than 20 jurisdictions had adopted the NAIC Data Security Model Law.

In addition, on March 1, 2019, the NYDFS’s cybersecurity regulation became fully effective, requiring covered financial institutions, including insurance entities licensed in New York, to, among other things, implement a cybersecurity program designed to protect information systems.

New York released proposed amendments to its cybersecurity regulation in 2022, which include additional obligations for large insurers including enhanced and updated governance, risk assessment, and technology requirements, new notification obligations, and clarifying changes regarding enforcement.

The State of California enacted the California Consumer Privacy Act of 2018 (CCPA), which was effective as of January 1, 2020, and imposed significant and often first-of-their-kind privacy obligations on businesses handling data related to California residents.

The law has a number of exceptions as a result of amendments; however, it does not apply to personal information collected, processed, sold, or disclosed pursuant to the federal Gramm-Leach-Bliley Act (GLBA) and implementing regulations or the California Financial Information Privacy Act (FIPA).

These amendments reduce the impact of the law on AIG in some, but not all, areas.

In addition, exemptions for personal information obtained in the context of certain business-to-business communications or transactions and for personal information pertaining to employees, agents and similar categories of individuals sunset on January 1, 2023.

The California Privacy Rights Act (CPRA) passed in November 2020 became effective January 1, 2023 and amends the CCPA to create additional privacy rights and obligations in California.

Colorado, Connecticut, Utah and Virginia also enacted comprehensive consumer data privacy laws and many other states have proposed similar laws.

These privacy laws impose requirements on covered businesses that are similar to those imposed by the CCPA with respect to privacy notices, data subject rights and data security standards.

In March 2022, the SEC released several proposed rules enhancing disclosure requirements for registered companies covering cybersecurity risk and management.

If enacted, the proposed rules would, among other things, require disclosure by registrants of any material cybersecurity incident on Form 8-K within four business days of determining that the incident the registrant has experienced is material.

They would also require periodic disclosures of, among other things, (i) details on the company’s cybersecurity policies and procedures, (ii) cybersecurity governance and oversight policies, including the board of directors’ oversight of cybersecurity risks and (iii) details of any cybersecurity incident that was previously disclosed on Form 8-K, as well as any undisclosed incidents that were non-material, but have become material in the aggregate.

The EU General Data Protection Regulation (GDPR) took effect in May 2018.

The GDPR’s scope extends to entities established within the EEA (i.e., EU member states plus Iceland, Liechtenstein and Norway) and to certain entities not established in the EEA (in certain instances, if they solicit or target individuals in the EU by offering goods or services to EEA data subjects or monitoring the personal behavior of EEA data subjects (e.g., in an online context)).

The GDPR was also onshored in the UK through the European

Union (Withdrawal) Act 2018, with adjustments as provided in the Data Protection, Privacy and Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019.

Sanctions for non-compliance with the GDPR are onerous, with the potential for fines of up to 4 percent of global revenue for the most serious infringements of the GDPR.

We have sought to address the GDPR’s requirements by demonstrating accountability for compliance with the GDPR’s principles relating to processing of personal data, maintaining records of processing and completing mandatory Data Protection Impact Assessments in connection with higher risk data processing activities.

In April 2021, the European Commission published its Proposal for a Regulation on a European approach for Artificial Intelligence (Artificial Intelligence Act), which recommends a risk-based approach to restricting, regulating and permitting different AI systems.

It is possible that some ESG rules enacted in international jurisdictions where AIG operates could impact AIG Parent.

The DOL’s final rule confirmed use of a five-part test for determining who is an investment advice fiduciary, and also confirmed related exemptions.

In December 2020, the DOL issued the final version of a new prohibited transaction exemption, for parties that qualify as investment advice fiduciaries.

The DOL is reviewing issues relating to its regulation of fiduciary investment advice and may take further regulatory actions.

We continue to monitor developments with respect to the definition of fiduciary “investment advice” to ERISA plans and IRAs and to prohibited transactions exemptions.

In December 2022, Congress enacted comprehensive retirement legislation within the Consolidated Appropriations Act, 2023.

The provisions drew from the House’s proposed Securing a Strong Retirement Act of 2022, the Senate Finance Committee’s proposed Enhancing American Retirement Now (EARN) Act, and the Senate HELP Committee’s proposed Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE & SHINE) Act, collectively known as “SECURE 2.0”.

*For a discussion of legal proceedings, see Note [removed: 15] [added: 17] to the Consolidated Financial Statements, which is incorporated herein by reference.*

For the fiscal year ended December 31, [removed: 2022][added: 2023]

[removed: ][added: ]

As of June 30, [removed: 2022,] [added: 2023,] the aggregate market value of the registrant's voting and nonvoting common equity held by nonaffiliates was approximately [removed: $35,300,000,000.][added: $36,903,000,000.]

As of February [removed: 10, 2023, 737,247,384] [added: 8, 2024, 680,953,652] shares of the registrant's Common Stock, $2.50 par value per share, were outstanding.

| Portions of the registrant’s definitive proxy statement for the [removed: 2023] [added: 2024] Annual Meeting of Shareholders | | | Part [removed: II, Item 5 and Part] III, Items 10, 11, 12, 13 and 14 | | |

ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, [removed: 2022][added: 2023]

[removed: | [ITEM 1](#if9f982e359be4d0bb8fe661b922414ee_667) | | | [Business](#if9f982e359be4d0bb8fe661b922414ee_667) | | | | | | [2](#if9f982e359be4d0bb8fe661b922414ee_667) | |] [added: ITEM 1] | [added: Business]

| | | | •[Our Global Business [removed: Overview](#if9f982e359be4d0bb8fe661b922414ee_667)] [added: Overview](#i3bdcfcee27954b6aae3316a5ec2a29ce_835)] | | | | | | [removed: [2](#if9f982e359be4d0bb8fe661b922414ee_667)] [added: [2](#i3bdcfcee27954b6aae3316a5ec2a29ce_835)] | | |

| | | | •[Human Capital [removed: Management](#if9f982e359be4d0bb8fe661b922414ee_691)] [added: Management](#i3bdcfcee27954b6aae3316a5ec2a29ce_850)] | | | | | | [removed: [5](#if9f982e359be4d0bb8fe661b922414ee_691)] [added: [5](#i3bdcfcee27954b6aae3316a5ec2a29ce_850)] | | |

| | | | •[Available Information about [removed: AIG](#if9f982e359be4d0bb8fe661b922414ee_700)] [added: AIG](#i3bdcfcee27954b6aae3316a5ec2a29ce_856)] | | | | | | [removed: [14](#if9f982e359be4d0bb8fe661b922414ee_700)] [added: [14](#i3bdcfcee27954b6aae3316a5ec2a29ce_856)] | | |

| [ITEM [removed: 1A](#if9f982e359be4d0bb8fe661b922414ee_703)] [added: 1A](#i3bdcfcee27954b6aae3316a5ec2a29ce_556)] | | | [Risk [removed: Factors](#if9f982e359be4d0bb8fe661b922414ee_703)] [added: Factors](#i3bdcfcee27954b6aae3316a5ec2a29ce_556)] | | | | | | [removed: [15](#if9f982e359be4d0bb8fe661b922414ee_703)] [added: [15](#i3bdcfcee27954b6aae3316a5ec2a29ce_556)] | | |

| [ITEM [removed: 1B](#if9f982e359be4d0bb8fe661b922414ee_733)] [added: 1B](#i3bdcfcee27954b6aae3316a5ec2a29ce_859)] | | | [Unresolved Staff [removed: Comments](#if9f982e359be4d0bb8fe661b922414ee_733)] [added: Comments](#i3bdcfcee27954b6aae3316a5ec2a29ce_859)] | | | | | | [removed: [39](#if9f982e359be4d0bb8fe661b922414ee_733)] [added: [37](#i3bdcfcee27954b6aae3316a5ec2a29ce_859)] | | |

| [ITEM [removed: 3](#if9f982e359be4d0bb8fe661b922414ee_619)] [added: 3](#i3bdcfcee27954b6aae3316a5ec2a29ce_553)] | | | [Legal [removed: Proceedings](#if9f982e359be4d0bb8fe661b922414ee_619)] [added: Proceedings](#i3bdcfcee27954b6aae3316a5ec2a29ce_553)] | | | | | | [removed: [39](#if9f982e359be4d0bb8fe661b922414ee_619)] [added: [40](#i3bdcfcee27954b6aae3316a5ec2a29ce_553)] | | |

| [ITEM [removed: 4](#if9f982e359be4d0bb8fe661b922414ee_628)] [added: 4](#i3bdcfcee27954b6aae3316a5ec2a29ce_568)] | | | [Mine Safety [removed: Disclosures](#if9f982e359be4d0bb8fe661b922414ee_628)] [added: Disclosures](#i3bdcfcee27954b6aae3316a5ec2a29ce_568)] | | | | | | [removed: [39](#if9f982e359be4d0bb8fe661b922414ee_628)] [added: [40](#i3bdcfcee27954b6aae3316a5ec2a29ce_568)] | | |

| [ITEM [removed: 5](#if9f982e359be4d0bb8fe661b922414ee_739)] [added: 5](#i3bdcfcee27954b6aae3316a5ec2a29ce_652)] | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#if9f982e359be4d0bb8fe661b922414ee_739)] [added: Securities](#i3bdcfcee27954b6aae3316a5ec2a29ce_652)] | | | | | | [removed: [40](#if9f982e359be4d0bb8fe661b922414ee_739)] [added: [41](#i3bdcfcee27954b6aae3316a5ec2a29ce_652)] | | |

| [removed: [ITEM 7](#if9f982e359be4d0bb8fe661b922414ee_367)] [added: [ITEM](#i3bdcfcee27954b6aae3316a5ec2a29ce_295) [7](#i3bdcfcee27954b6aae3316a5ec2a29ce_295)] | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#if9f982e359be4d0bb8fe661b922414ee_367)] [added: Operations](#i3bdcfcee27954b6aae3316a5ec2a29ce_295)] | | | | | | [removed: [42](#if9f982e359be4d0bb8fe661b922414ee_367)] [added: [43](#i3bdcfcee27954b6aae3316a5ec2a29ce_295)] | | |

| | | | •[Cautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future [removed: Results](#if9f982e359be4d0bb8fe661b922414ee_370)] [added: Results](#i3bdcfcee27954b6aae3316a5ec2a29ce_298)] | | | | | | [removed: [42](#if9f982e359be4d0bb8fe661b922414ee_370)] [added: [43](#i3bdcfcee27954b6aae3316a5ec2a29ce_298)] | | |

| | | | •[Use of Non-GAAP [removed: Measures](#if9f982e359be4d0bb8fe661b922414ee_376)] [added: Measures](#i3bdcfcee27954b6aae3316a5ec2a29ce_304)] | | | | | | [removed: [45](#if9f982e359be4d0bb8fe661b922414ee_376)] [added: [46](#i3bdcfcee27954b6aae3316a5ec2a29ce_304)] | | |

| | | | •[Critical Accounting [removed: Estimates](#if9f982e359be4d0bb8fe661b922414ee_379)] [added: Estimates](#i3bdcfcee27954b6aae3316a5ec2a29ce_307)] | | | | | | [removed: [47](#if9f982e359be4d0bb8fe661b922414ee_379)] [added: [48](#i3bdcfcee27954b6aae3316a5ec2a29ce_307)] | | |

| | | | •[Consolidated Results of [removed: Operations](#if9f982e359be4d0bb8fe661b922414ee_418)] [added: Operations](#i3bdcfcee27954b6aae3316a5ec2a29ce_361)] | | | | | | [removed: [64](#if9f982e359be4d0bb8fe661b922414ee_418)] [added: [60](#i3bdcfcee27954b6aae3316a5ec2a29ce_361)] | | |

| | | | •[Business Segment [removed: Operations](#if9f982e359be4d0bb8fe661b922414ee_442)] [added: Operations](#i3bdcfcee27954b6aae3316a5ec2a29ce_388)] | | | | | | [removed: [68](#if9f982e359be4d0bb8fe661b922414ee_442)] [added: [65](#i3bdcfcee27954b6aae3316a5ec2a29ce_388)] | | |

| | | | •[Liquidity and Capital [removed: Resources](#if9f982e359be4d0bb8fe661b922414ee_544)] [added: Resources](#i3bdcfcee27954b6aae3316a5ec2a29ce_472)] | | | | | | [removed: [108](#if9f982e359be4d0bb8fe661b922414ee_544)] [added: [104](#i3bdcfcee27954b6aae3316a5ec2a29ce_472)] | | |

| [removed: [ITEM 7A](#if9f982e359be4d0bb8fe661b922414ee_549755817995)] [added: [ITEM](#i3bdcfcee27954b6aae3316a5ec2a29ce_544) [7A](#i3bdcfcee27954b6aae3316a5ec2a29ce_544)] | | | [Quantitative and Qualitative Disclosures About Market [removed: Risk](#if9f982e359be4d0bb8fe661b922414ee_549755817995)] [added: Risk](#i3bdcfcee27954b6aae3316a5ec2a29ce_544)] | | | | | | [removed: [132](#if9f982e359be4d0bb8fe661b922414ee_549755817995)] [added: [124](#i3bdcfcee27954b6aae3316a5ec2a29ce_544)] | | |

| [ITEM [removed: 8](#if9f982e359be4d0bb8fe661b922414ee_549755817982)] [added: 8](#i3bdcfcee27954b6aae3316a5ec2a29ce_901)] | | | [Financial Statements and Supplementary [removed: Data](#if9f982e359be4d0bb8fe661b922414ee_549755817982)] [added: Data](#i3bdcfcee27954b6aae3316a5ec2a29ce_901)] | | | | | | [removed: [133](#if9f982e359be4d0bb8fe661b922414ee_549755817982)] [added: [125](#i3bdcfcee27954b6aae3316a5ec2a29ce_901)] | | |

| | | | [Reference to Financial Statements and [removed: Schedules](#if9f982e359be4d0bb8fe661b922414ee_549755817982)] [added: Schedules](#i3bdcfcee27954b6aae3316a5ec2a29ce_901)] | | | | | | [removed: [133](#if9f982e359be4d0bb8fe661b922414ee_549755817982)] [added: [125](#i3bdcfcee27954b6aae3316a5ec2a29ce_901)] | | |

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| [removed: [ITEM](#if9f982e359be4d0bb8fe661b922414ee_5931) [9A](#if9f982e359be4d0bb8fe661b922414ee_5931)] [added: [ITEM](#i3bdcfcee27954b6aae3316a5ec2a29ce_907) [9A](#i3bdcfcee27954b6aae3316a5ec2a29ce_907)] | | | [Controls and [removed: Procedures](#if9f982e359be4d0bb8fe661b922414ee_5931)] [added: Procedures](#i3bdcfcee27954b6aae3316a5ec2a29ce_907)] | | | | | | [removed: [256](#if9f982e359be4d0bb8fe661b922414ee_5931)] [added: [259](#i3bdcfcee27954b6aae3316a5ec2a29ce_907)] | | |

| [ITEM [removed: 9C](#if9f982e359be4d0bb8fe661b922414ee_5943)] [added: 9C](#i3bdcfcee27954b6aae3316a5ec2a29ce_913)] | | | [Disclosure Regarding Foreign Jurisdictions that Prevent [removed: Inspections](#if9f982e359be4d0bb8fe661b922414ee_5943)] [added: Inspections](#i3bdcfcee27954b6aae3316a5ec2a29ce_913)] | | | | | | [removed: [256](#if9f982e359be4d0bb8fe661b922414ee_5943)] [added: [260](#i3bdcfcee27954b6aae3316a5ec2a29ce_913)] | | |

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| AIG \| [removed: 2022] [added: 2023] Form 10-K | | | 1 | | |

| [removed: Maximizing] [added: Sustaining] Industry Leadership [removed: and Global Footprint] [added: Momentum] | | | | | | | | | Creating Value through Profitable Growth and a Culture of Underwriting and Operational Excellence | | | | | |

| 2 | | | AIG \| [removed: 2022] [added: 2023] Form 10-K | | |

| Highly Engaged Global Workforce of more than [removed: 26,000] [added: 25,000] colleagues committed to excellence who are providing [removed: services] [added: insurance solutions that help businesses and individuals] in approximately [removed: 70] [added: 190] countries and [removed: jurisdictions.] [added: jurisdictions protect their assets and manage risks through AIG operations and network partners.] | | | | | | Balance Sheet Strength and Financial Flexibility as demonstrated by [removed: $40] [added: approximately $45] billion in shareholders’ equity and AIG Parent liquidity sources of [removed: $8.2] [added: $12.1] billion as of December 31, [removed: 2022.] [added: 2023.] | | |

| AIG \| [removed: 2022] [added: 2023] Form 10-K | | | 3 | | |

MD&A [added: – Business Segment Operations] and Note 3 to the Consolidated Financial Statements, and for information regarding the separation of Life and [removed: Retirement and] [added: Retirement,] bankruptcy filing of AIG Financial Products [removed: Corp.,] [added: Corp. and the sale of Validus Re, CRS, AIG Life and Laya,] see Note 1 to the Consolidated Financial Statements.*

| | | | [removed: ] [added: ] | | | | | | | | | [removed: ] [added: ] | | | | | |

| | | | General Insurance includes the following major operating companies: National Union Fire Insurance Company of Pittsburgh, Pa. (National Union); American Home Assurance Company (American Home); Lexington Insurance Company (Lexington); AIG General Insurance Company, [removed: Ltd. (AIG Sonpo);] [added: Ltd.;] AIG Asia Pacific Insurance, Pte, Ltd.; AIG Europe S.A.; American International Group UK Ltd.; [removed: Validus Reinsurance, Ltd. (Validus Re);] Talbot Holdings Ltd. (Talbot); Western World Insurance [removed: Group, Inc.] [added: Company] and Glatfelter Insurance Group (Glatfelter). | | | | | | | | | Life and Retirement includes the following major operating companies: American General Life Insurance Company (AGL); The Variable Annuity Life Insurance Company (VALIC); The United States Life Insurance Company in the City of New York (U.S. [removed: Life); Laya Healthcare Limited] [added: Life)] and AIG [removed: Life Limited.] [added: Life.] | | | | | |

| [ITEM 1](#i3bdcfcee27954b6aae3316a5ec2a29ce_835) | | | [Business](#i3bdcfcee27954b6aae3316a5ec2a29ce_835) | | | | | | [2](#i3bdcfcee27954b6aae3316a5ec2a29ce_835) | | |

| | | | •[Operating Structure](#i3bdcfcee27954b6aae3316a5ec2a29ce_844) | | | | | | [4](#i3bdcfcee27954b6aae3316a5ec2a29ce_844) | | |

| | | | •[How We Generate Revenues and Profitability](#i3bdcfcee27954b6aae3316a5ec2a29ce_847) | | | | | | [5](#i3bdcfcee27954b6aae3316a5ec2a29ce_847) | | |

| | | | •[Regulation](#i3bdcfcee27954b6aae3316a5ec2a29ce_853) | | | | | | [7](#i3bdcfcee27954b6aae3316a5ec2a29ce_853) | | |

| [ITEM 1](#i3bdcfcee27954b6aae3316a5ec2a29ce_4572)[C](#i3bdcfcee27954b6aae3316a5ec2a29ce_4572) | | | [Cybersecurity](#i3bdcfcee27954b6aae3316a5ec2a29ce_4572) | | | | | | [38](#i3bdcfcee27954b6aae3316a5ec2a29ce_4572) | | |

| [ITEM 2](#i3bdcfcee27954b6aae3316a5ec2a29ce_862) | | | [Properties](#i3bdcfcee27954b6aae3316a5ec2a29ce_862) | | | | | | [40](#i3bdcfcee27954b6aae3316a5ec2a29ce_862) | | |

| [ITEM 6](#i3bdcfcee27954b6aae3316a5ec2a29ce_658) | | | [\[Reserved\]](#i3bdcfcee27954b6aae3316a5ec2a29ce_658) | | | | | | [42](#i3bdcfcee27954b6aae3316a5ec2a29ce_658) | | |

| | | | •[Executive Summary](#i3bdcfcee27954b6aae3316a5ec2a29ce_340) | | | | | | [57](#i3bdcfcee27954b6aae3316a5ec2a29ce_340) | | |

| | | | •[Investments](#i3bdcfcee27954b6aae3316a5ec2a29ce_433) | | | | | | [86](#i3bdcfcee27954b6aae3316a5ec2a29ce_433) | | |

| | | | •[Insurance Reserves](#i3bdcfcee27954b6aae3316a5ec2a29ce_451) | | | | | | [96](#i3bdcfcee27954b6aae3316a5ec2a29ce_451) | | |

| | | | •[Enterprise Risk Management](#i3bdcfcee27954b6aae3316a5ec2a29ce_526) | | | | | | [114](#i3bdcfcee27954b6aae3316a5ec2a29ce_526) | | |

| | | | •[Glossary](#i3bdcfcee27954b6aae3316a5ec2a29ce_538) | | | | | | [122](#i3bdcfcee27954b6aae3316a5ec2a29ce_538) | | |

| | | | •[Acronyms](#i3bdcfcee27954b6aae3316a5ec2a29ce_541) | | | | | | [124](#i3bdcfcee27954b6aae3316a5ec2a29ce_541) | | |

| [ITEM](#i3bdcfcee27954b6aae3316a5ec2a29ce_571) 9B | | | [Other Information](#i3bdcfcee27954b6aae3316a5ec2a29ce_571) | | | | | | [260](#i3bdcfcee27954b6aae3316a5ec2a29ce_571) | | |

| [ITEM 11](#i3bdcfcee27954b6aae3316a5ec2a29ce_607) | | | [Executive Compensation](#i3bdcfcee27954b6aae3316a5ec2a29ce_607) | | | | | | [262](#i3bdcfcee27954b6aae3316a5ec2a29ce_607) | | |

| [ITEM 14](#i3bdcfcee27954b6aae3316a5ec2a29ce_616) | | | [Principal Accountant Fees and Services](#i3bdcfcee27954b6aae3316a5ec2a29ce_616) | | | | | | [262](#i3bdcfcee27954b6aae3316a5ec2a29ce_616) | | |

| [ITEM 16](#i3bdcfcee27954b6aae3316a5ec2a29ce_943) | | | [Form 10-K Summary](#i3bdcfcee27954b6aae3316a5ec2a29ce_943) | | | | | | [267](#i3bdcfcee27954b6aae3316a5ec2a29ce_943) | | |

| | | | | | | | | | | | |

| | | | | | | | | | | | |

| | | | | | | | | | | | |

| [Signatures](#i3bdcfcee27954b6aae3316a5ec2a29ce_949) | | | | | | | | | [268](#i3bdcfcee27954b6aae3316a5ec2a29ce_949) | | |

| | | | | | | | | | | | |


| American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in approximately 190 countries and jurisdictions protect their assets and manage risks through AIG operations and network partners. AIG is building on its industry leadership and is positioned to become a top-performing company recognized for the value it provides stakeholders in an environment of profound, complex and dynamic risk. In 2023, AIG delivered an outstanding year, producing financial, strategic and operational achievements that demonstrate continued strength in executing multiple, complex initiatives simultaneously and with quality. | | |

As a leading global property, casualty and specialty insurance organization, we are results oriented and believe that focusing on how we achieve positive outcomes creates an aligned and inclusive culture that enables further progress.

Unifying under one set of clear and directive Purpose and Values empowers AIG colleagues to be conduits of positive change – delivering exceptional client service, enhanced shareholder value and a better experience for everyone we serve.

AIG’s five Values guide our actions:

- Take ownership: we set clear expectations, we are proactive, we are accountable

- Set the standard: we deliver quality—always, we are client-centric, we lead the industry

- Win together: we are stronger together, we are aligned, we are one team

- Be an ally: we strive for inclusion, we listen and learn, we speak with our actions

- Do what’s right: we act with integrity, we lead by example, we lift up our communities

2023 Highlights and 2024 Priorities

| Execution of Multiple, Highly Complex Strategic Initiatives Repositioned AIG’s portfolio of businesses for sustainable, profitable growth with the divestitures of Validus Reinsurance, Ltd. (Validus Re) and Crop Risk Services, Inc. (CRS) and the transfer of Private Client Select to an independent Managing General Agent platform Closed sale of Validus Re, including AlphaCat Managers Ltd. and the Talbot Treaty reinsurance business, for $3.3 billion in cash including pre-closing dividend Closed sale of CRS for gross proceeds of $234 million United General Insurance and AIG Parent leadership teams and their organizations Debuted AIG Next, creating a leaner future-state business model and establishing enterprise-wide standards to drive better outcomes for all stakeholders | | | | | | Continued Balanced Capital Management Supporting Financial Strength, Growth and Shareholder Return Repurchased $3.0 billion of AIG's common stock, par value $2.50 per share (AIG Common Stock) and paid $1.0 billion of dividends Reduced weighted average diluted shares outstanding by 8 percent, reaching 725.2 million shares Increased quarterly common stock dividend payments by 12.5 percent $0.36 per share during the second quarter of 2023 Reduced general borrowings by $1.4 billion | | |

| Strong Performance Resulting from Significant Improvement in Underwriting Income General Insurance achieved $2.3 billion in underwriting income, up 15 percent year over year 2023 combined ratio of 90.6 compared to 91.9 in 2022, and sub-100 in every quarter of 2023 2023 accident year combined ratio, as adjusted(a) of 87.7 improved 1.0 point compared to 88.7 in 2022 | | | | | | Continued Progress Towards Deconsolidation and Separation of Corebridge Financial, Inc. (Corebridge) AIG sold 159.75 million shares of Corebridge common stock in secondary public offerings with gross proceeds of $2.9 billion Corebridge repurchased 17.2 million shares of its common stock from AIG for an aggregate purchase price of $315 million Corebridge distributed dividends on Corebridge common stock totaling $1.1 billion to AIG AIG’s ownership of Corebridge reduced to 52.2 percent as of December 31, 2023 Corebridge closed the sale of Laya Healthcare Limited (Laya) for €691 million ($731 million) and announced the sale of AIG Life Limited (AIG Life) for consideration of £460 million | | |

MD&A – Investments – Investment Strategies.*

Our Compensation and Management Resources Committee of the Board of Directors (CMRC) is responsible for overseeing human capital management practices and programs, including retention, talent development, compensation and benefits, and diversity, equity and inclusion.

Diversity, Equity and Inclusion (DEI). At AIG, we strive to create an inclusive workplace that provides equal opportunities for all colleagues.

We believe in building a culture where everyone is valued and celebrated for who they are and where all perspectives are welcome.

The ERGs are key to fostering an inclusive workplace that provides a safe space for colleagues to engage, learn, give back to our communities, and provide feedback from their perspective to the business.

| | | | | | | | | |

Yes ☐ No ☐

| | | | •[Operating Structure](#if9f982e359be4d0bb8fe661b922414ee_549755817568) | | | | | | [4](#if9f982e359be4d0bb8fe661b922414ee_549755817568) | | |

| | | | •[Regulation](#if9f982e359be4d0bb8fe661b922414ee_694) | | | | | | [7](#if9f982e359be4d0bb8fe661b922414ee_694) | | |

| [ITEM 2](#if9f982e359be4d0bb8fe661b922414ee_736) | | | [Properties](#if9f982e359be4d0bb8fe661b922414ee_736) | | | | | | [39](#if9f982e359be4d0bb8fe661b922414ee_736) | | |

| [ITEM 6](#if9f982e359be4d0bb8fe661b922414ee_742) | | | [\[Reserved\]](#if9f982e359be4d0bb8fe661b922414ee_742) | | | | | | [41](#if9f982e359be4d0bb8fe661b922414ee_742) | | |

| | | | •[Executive Summary](#if9f982e359be4d0bb8fe661b922414ee_382) | | | | | | [60](#if9f982e359be4d0bb8fe661b922414ee_382) | | |

| | | | •[Investments](#if9f982e359be4d0bb8fe661b922414ee_514) | | | | | | [87](#if9f982e359be4d0bb8fe661b922414ee_514) | | |

| | | | •[Insurance Reserves](#if9f982e359be4d0bb8fe661b922414ee_529) | | | | | | [96](#if9f982e359be4d0bb8fe661b922414ee_529) | | |

| | | | •[Enterprise Risk Management](#if9f982e359be4d0bb8fe661b922414ee_592) | | | | | | [117](#if9f982e359be4d0bb8fe661b922414ee_592) | | |

| | | | •[Glossary](#if9f982e359be4d0bb8fe661b922414ee_604) | | | | | | [129](#if9f982e359be4d0bb8fe661b922414ee_604) | | |

| | | | •[Acronyms](#if9f982e359be4d0bb8fe661b922414ee_607) | | | | | | [131](#if9f982e359be4d0bb8fe661b922414ee_607) | | |

| [ITEM 9](#if9f982e359be4d0bb8fe661b922414ee_5931)B | | | [Other Information](#if9f982e359be4d0bb8fe661b922414ee_6539) | | | | | | [256](#if9f982e359be4d0bb8fe661b922414ee_6539) | | |

| [ITEM 11](#if9f982e359be4d0bb8fe661b922414ee_838) | | | [Executive Compensation](#if9f982e359be4d0bb8fe661b922414ee_838) | | | | | | [257](#if9f982e359be4d0bb8fe661b922414ee_838) | | |

| [ITEM 14](#if9f982e359be4d0bb8fe661b922414ee_835) | | | [Principal Accoun](#if9f982e359be4d0bb8fe661b922414ee_835)[tant](#if9f982e359be4d0bb8fe661b922414ee_835) [Fees and Services](#if9f982e359be4d0bb8fe661b922414ee_835) | | | | | | [257](#if9f982e359be4d0bb8fe661b922414ee_835) | | |

| [ITEM 16](#if9f982e359be4d0bb8fe661b922414ee_1099511633546) | | | [Form 10-K Summary](#if9f982e359be4d0bb8fe661b922414ee_1099511633546) | | | | | | [261](#if9f982e359be4d0bb8fe661b922414ee_1099511633546) | | |

| [Signatures](#if9f982e359be4d0bb8fe661b922414ee_859) | | | | | | | | | [262](#if9f982e359be4d0bb8fe661b922414ee_859) | | |

| American International Group, Inc. (AIG) is a leading global insurance organization. We provide a wide range of property casualty insurance, life insurance, retirement solutions and other financial services to customers in approximately 70 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange. In 2022, AIG delivered strong financial results while executing on strategic imperatives such as our capital management plan; the initial public offering (IPO) of Corebridge Financial, Inc. (NYSE: CRBG); and achieved the exit run-rate savings goal of AIG 200, our global, multi-year effort focused on positioning AIG for the future. Despite global challenges, AIG achieved a sub-100 combined ratio in every quarter of 2022 as a result of disciplined underwriting, new business development and improved retention across the portfolio. | | |

2022 Highlights

| Path to the Future Completion of IPO of Corebridge Financial, Inc. (Corebridge), the largest U.S. IPO in 2022, which created two standalone, market-leading companies Strategic partnership with BlackRock, Inc. (BlackRock) to manage up to $60 billion of assets for AIG and up to $90 billion for Corebridge. As of December 31, 2022, $162 billion of assets have been transferred AIG 200: Achieved exit run-rate savings goal of $1 billion six months ahead of schedule. We continue to execute on our multi-year effort to modernize operating infrastructure and enhance client and distribution partner experiences | | | | | | Continued Progress on Capital Management Initiatives Reduced general borrowings by $9.4 billion Repurchased $5.1 billion of AIG's common stock, par value $2.50 per share (AIG Common Stock) and paid $1.0 billion of dividends | | |

| Strong General Insurance Performance Resulting from Significant Improvement in Underwriting Income General Insurance achieved $2.0 billion in underwriting income, up 94 percent year over year 2022 combined ratio of 91.9 compared to 95.8 in 2021, and sub-100 in every quarter of 2022 2022 accident year combined ratio, as adjusted(a) of 88.7 improved 2.3 points compared to 91.0 in 2021 | | | | | | Successful Completion of Corebridge IPO AIG closed IPO, representing 12.4 percent of Corebridge's common stock. The aggregate gross proceeds of the offering to AIG, before deducting underwriting discounts and commissions and other expenses payable by AIG, were approximately $1.7 billion. After consideration of underwriting discounts, commissions and other related expenses payable by AIG, AIG recorded a $608 million increase in AIG’s shareholder’s equity Following the IPO, AIG owns approximately 77.7 percent of the outstanding common stock of Corebridge Corebridge established capital structure and paid $297 million of dividends to its shareholders in 2022, post IPO | | |

MD&A – Investments.*

AIG places a strong emphasis on diversity and inclusion in its learning programs.

We have delivered conscious inclusion training to over 59 percent of people managers to build their awareness of bias and its impact on team members and to hone their empathy skills to support diverse teams.

In addition, the Company also released *Hiring & Developing Top Talent*, an eLearning series for people managers and talent acquisition professionals focused on exploring hidden bias in talent acquisition and development.

Diversity, Equity and Inclusion (DEI). AIG is committed to creating an inclusive workplace focused on attracting, retaining and developing diverse talent that fosters a culture of belonging for all employees.

The ERGs are key to supporting a culture of inclusion and belonging at AIG and do so by connecting colleagues, supporting mental health wellness, promoting intersectionality, and giving back to our communities.

To support the attraction and development of diverse talent, AIG took several proactive steps in 2022, including enhancing partnerships with diverse organizations.

Additionally, AIG's Accelerated Leadership Development program matches mid-level underrepresented talent in AIG’s leadership pipeline with senior executive mentors who coach them on essential senior management and executive leadership skills.

The NAIC has proposed that provisions of the December 2020 amendments to the Holding Company Models that authorize the GCC and LST will become accreditation standards effective as of January 1, 2026, and, if this occurs, states will be required to adopt significant elements of the Holding Company Models that authorize the GCC and LST by January 1, 2026 to remain accredited by the NAIC.

In recent years, insurance regulators have also emphasized the investigation of alleged improper insurance pricing and sales practices by insurers, including, for example, race-based underwriting or sales practices, misleading sales presentations by insurance agents, targeting of the elderly or other vulnerable adults, and the suitability of products for potential customers.

U.S. state regulators have five years from the dates the covered agreements were signed to adopt reinsurance collateral reforms and a group capital assessment, which has led a number of states to adopt the NAIC’s GCC well in advance of the January 1, 2026 target implementation date.

AIG Federal Savings Bank, our trust-only federal thrift subsidiary, is supervised and regulated by the Office of the Comptroller of the Currency.

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| --- | --- | --- | --- | --- | --- | --- |

| AIG \| 2023 Form 10-K | | | 37 | | |

ITEM 1C | Cybersecurity

ITEM 1C | Cybersecurity

CYBERSECURITY RISK MANAGEMENT

AIG maintains a documented Information Security Program (the Program) that includes risk assessments regularly conducted by us and third-party experts to evaluate potential security threats that may have a negative impact on the organization, detect potential vulnerabilities and mitigate any identified security risks.

The Program is informed by industry standards and frameworks and is designed to protect the confidentiality, integrity, and availability of AIG’s information assets and systems that store, process or transmit information.

The AIG Chief Information Security Officer (CISO) provides oversight and direction for the Program, including adjustments in response to changes in technology, internal or external threats, business processes, and regulatory or statutory requirements and communicates the information security risk posture of AIG to senior management and the AIG Board of Directors.

The Program includes the following key elements:

- Network, Systems and Data Security – The Company deploys technical and organizational safeguards that are designed to protect the Company’s networks, systems, and data from cybersecurity threats, including firewalls, intrusion prevention and detection systems, anti-malware functionality, and access controls.

- Threat and Vulnerability Management – The Company maintains a threat and vulnerability management program that leverages continuous threat intelligence to seek to proactively identify, assess, and mitigate evolving cybersecurity risks.

This program incorporates vulnerability scanning, remediation management, bug bounty, penetration testing, and threat response capabilities, all designed to safeguard our information assets and ensure business continuity.

- Cybersecurity Incident Monitoring and Response – The Company has established and maintains incident response plans that address the Company’s response to a cybersecurity incident, utilizing a cross-functional approach.

- Third Party Assessment and Oversight – The Company maintains a third-party risk management program designed to identify and manage cybersecurity risks from third-party service providers, including initial due diligence and assessment of the service provider’s control environment as well as periodic re-assessments.

- Security Training and Awareness – The Company provides ongoing education and training to employees regarding information security threats, and their role and responsibility in detecting and responding to such threats.

In addition to the above, where appropriate, AIG employs third-party experts to evaluate our cybersecurity risk management program.

The Company conducts annual external penetration tests to simulate real-world attacks against the Company’s networks and applications which supplement our continuous internal application security assessments.

These independent evaluations help uncover potential security vulnerabilities for remediation by our cybersecurity team.

We also operate a bug bounty program through a crowdsourced security platform to incentivize responsible disclosure of software defects by global security researchers.

The Program is evaluated on an ongoing basis both internally and through the use of third-party audit firms to address and protect against the evolving cyber threat landscape and seeks to align to industry standards such as the National Institute of Standards and Technology Cybersecurity Framework, as well as applicable legal and regulatory guidance and mandates related to all AIG stakeholders, including investors, customers, and employees.

Control adequacy and design are reviewed at least annually, and independent audits and penetration tests assist in identifying areas for continued focus, improvement and/or inclusion, and are designed to provide assurance that controls are appropriately designed and operating effectively.

Additionally, the Company's Internal Audit group performs independent testing of the Company’s control environment, including key components of the Program.

Board Oversight and Governance

AIG's Board of Directors (the Board) oversees the Program and management of risks from cybersecurity threats and reviews and monitors AIG's business and technology strategy, including the policies, processes and practices that the Company’s management implements to address risks from cybersecurity threats.

The Board believes that all directors are responsible for oversight of these matters given the increasing importance of cybersecurity to AIG’s risk profile, as well as the significant role the Company’s technology strategy plays in its strategic priorities.

The Chief Information Officer (CIO), CISO and Chief Risk Officer provide updates to the Board as appropriate.

Global Committees

Group Risk Committee (GRC): The GRC is a committee comprised of senior management and is responsible for assessing significant risk issues on a global basis to protect AIG’s financial strength, optimize AIG’s intrinsic value, and protect AIG’s reputation.

The risks considered by the GRC include those relating to cybersecurity.

| | | | | | | |

| --- | --- | --- | --- | --- | --- | --- |

| 38 | | | AIG \| 2023 Form 10-K | | |

Technology Risk and Controls Committee (TRCC): The TRCC is used as a platform to assess risk and controls components across the information technology (IT) landscape including cybersecurity.

It manages the risk assessment process, escalation and implementation of risk acceptance thresholds with the help of the GRC.

Regional, Country Risk and IT Risk Committees

- Asia Pacific (APAC) Technology Risk and Controls (TRC) Forum

- APAC - TRC Zone / Country Monthly Forums

- Japan IT Risk Committee

- Europe, Middle East and Africa region/UK and Latin America and Caribbean TRC Forum

The above forums are set up for regional focus on IT, cybersecurity, regulations and overall issue management.

The forums engage with the Company's relevant IT leaders and functional leaders within Enterprise Risk Management, Legal, Compliance, and Internal Audit.

Each of the Board and regional and country leadership boards may receive periodic presentations and reports on cybersecurity risks.

In the event of a material cybersecurity incident, the Board will receive prompt information and ongoing updates about the incident.

The Company has an established issue escalation protocol for technology incidents, including cyber related incidents.

The Company’s technology incidents and risks are tracked and rated.

Items that are rated as "critical" are discussed in the TRCC, and escalated to the GRC as appropriate.

At least once each year, the Board discusses the Company’s approach to cybersecurity risk management with the Company’s Global Chief Information Security Officer.

The CISO and regional/country information security officers regularly present to the Company’s regional and country leadership boards on material cyber risks and the Company’s information security posture and strategy.

The CISO works collaboratively with business and functional colleagues to implement a program designed to protect the Company’s information system from cybersecurity threats and promptly respond to potential cybersecurity incidents.

Multidisciplinary teams are deployed to respond to cybersecurity incidents in accordance with the Company’s incident response plans.

Through ongoing communication from these teams, the CISO monitors the prevention, detection, mitigation and remediation of cybersecurity incidents in real time, and reports such incidents to the Board when appropriate.

The CISO reports to the CIO and is principally responsible for overseeing the Program, in partnership with other business leaders across the Company including regional information security and technology officers.

The Company’s cybersecurity personnel maintain current knowledge through specific training programs, professional certifications, and participation in industry groups (e.g., Financial Services Sector Coordinating Council, Financial Services Information Sharing and Analysis Center, Analysis and Resilience Center, Securities Industry and Financial Markets Association, Cybersecurity and Infrastructure Security Agency, etc.).

Company cybersecurity personnel expand and test their knowledge of cyber threats and countermeasures through additional on-the-job training and quarterly sponsored simulated exercises to practice their response to real-life threats.

In addition, personnel are encouraged to obtain industry approved certifications as appropriate for their roles and responsibilities.

Below are some examples of certifications held by the Company’s cybersecurity personnel: Certified in the Governance of Enterprise IT, Certified Information Systems Security Professional, Certified Information Security Manager, Certified Risk Information Systems Control, Global Information Assurance Certification (GIAC) Certified Incident Handler, GIAC Assessing and Auditing Wireless Networks, and GIAC Continuous Monitoring Certification.

Our CISO has more than 30 years’ leadership experience in the field of information technology, cybersecurity, and adjacent roles spanning both military, corporate, and advisory roles.

He maintains multiple professional certifications and has completed various academic and professional training courses, including the Federal Bureau of Investigation CISO Academy.

In addition, he continues to serve on cybersecurity advisory councils and on the faculty of educational institutions focused on network security and information technology.

There have been no material cybersecurity incidents that have affected AIG for the period covered by this annual report.

*For a discussion regarding risks associated with cybersecurity threats, see Part I, Item 1A.

Risk Factors – 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" and “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.”*

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| --- | --- | --- | --- | --- | --- | --- |

| AIG \| 2023 Form 10-K | | | 39 | | |

ITEM 2 | Properties

We operate from approximately 130 offices in the United States and approximately [removed: 250] [added: 240] offices in approximately 40 foreign countries.

As of December 31, [removed: 2022,] [added: 2023,] approximately 8 percent of our consolidated assets were located outside the U.S. and Canada.

We own 9 offices in the United States and 40 offices in 7 foreign countries.

We own 12 office buildings in the United States.

Our General Insurance companies own offices in 10 foreign countries including Bermuda, Ecuador, Japan, Mexico, the UK and Venezuela.

| [added: 40 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 39 | | |]

There were approximately [removed: 19,509 stockholders] [added: 18,502 shareholders] of record of AIG Common Stock as of February [removed: 10, 2023.][added: 8, 2024.]

The following table provides information about purchases made by or on behalf of AIG or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934 (the Exchange Act)) of AIG Common Stock during the three months ended December 31, [removed: 2022:][added: 2023:]

| Period | | | Total Number of Shares Repurchased | | | | | | Average Price Paid per [removed: Share] [added: Share*] | | | | | | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | | | | | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) | | | | | |

On [removed: May 3, 2022,] [added: August 1, 2023,] the Board of Directors authorized the repurchase of [removed: $6.5] [added: $7.5] billion of AIG Common Stock (inclusive of the approximately [removed: $1.5] [added: $2.15] billion of expected remaining authorization [added: under the Board's prior share repurchase authorization] upon expiration of the [removed: then-current] [added: current] 10b5-1 Plan as of [removed: May 20, 2022).][added: August 7, 2023).]

As of December 31, [removed: 2022,] [added: 2023,] approximately [removed: $3.8] [added: $6.2] billion remained under the authorization.

*For additional information on our share purchases, see Note [removed: 16] [added: 18] to the Consolidated Financial Statements.*

| [removed: 40 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 41 | | |]

The following Performance Graph compares the cumulative total shareholder return on AIG Common Stock for a five-year period (December 31, [removed: 2017] [added: 2018] to December 31, [removed: 2022)] [added: 2023)] with the cumulative total return of the S&P’s 500 stock index (which includes AIG), the S&P Property and Casualty Insurance Index and the S&P Life and Health Insurance Index.

Value of $100 Invested on December 31, [removed: 2017][added: 2018]

[removed: ][added: ]

| | | | | | | [removed: 2017] [added: 2018] | | | | | | | | | [removed: 2018] [added: 2019] | | | | | | | | | [removed: 2019] [added: 2020] | | | | | | | | | [removed: 2020] [added: 2021] | | | | | | | | | [removed: 2021] [added: 2022] | | | | | | | | | [removed: 2022] [added: 2023] | | |

See Part III, Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

| October 1-31 | | | 2,787,099 | | | $ | | | 60.72 | | | | | | 2,787,099 | | | | | | $ | | | 7,038 | | |

| November 1-30 | | | 6,703,311 | | | | | | 64.26 | | | | | | 6,703,311 | | | | | | | | | 6,608 | | |

| December 1-31 | | | 6,685,175 | | | | | | 66.51 | | | | | | 6,685,175 | | | | | | | | | 6,163 | | |

| Total | | | 16,175,585 | | | $ | | | 64.58 | | | | | | 16,175,585 | | | | | | $ | | | 6,163 | | |

*Excludes excise tax of $27 million due to the Inflation Reduction Act of 2022 for the year ended December 31, 2023.

| AIG | | | $ | | | 100.00 | | | | | | $ | | | 133.58 | | | | | | $ | | | 102.52 | | | | | | $ | | | 157.80 | | | | | | $ | | | 179.49 | | | | | | $ | | | 196.94 | | |

| S&P 500 | | | | | | 100.00 | | | | | | | | | 131.49 | | | | | | | | | 155.68 | | | | | | | | | 200.37 | | | | | | | | | 164.08 | | | | | | | | | 207.21 | | |

| S&P 500 Property & Casualty Insurance Index | | | | | | 100.00 | | | | | | | | | 125.87 | | | | | | | | | 134.63 | | | | | | | | | 160.58 | | | | | | | | | 190.89 | | | | | | | | | 211.53 | | |

| S&P 500 Life & Health Insurance | | | | | | 100.00 | | | | | | | | | 123.18 | | | | | | | | | 111.51 | | | | | | | | | 152.41 | | | | | | | | | 168.18 | | | | | | | | | 176.00 | | |

Our table of equity compensation plans will be included in the definitive proxy statement for AIG’s 2023 Annual Meeting of Shareholders.

The definitive proxy statement will be filed with the SEC no later than 120 days after the end of AIG’s fiscal year pursuant to Regulation 14A.

| October 1-31 | | | 4,698,357 | | | $ | | | 51.97 | | | | | | 4,698,357 | | | | | | $ | | | 4,329 | | |

| November 1-30 | | | 3,793,917 | | | | | | 60.21 | | | | | | 3,793,917 | | | | | | | | | 4,101 | | |

| December 1-31 | | | 4,896,176 | | | | | | 62.59 | | | | | | 4,896,176 | | | | | | | | | 3,794 | | |

| Total | | | 13,388,450 | | | $ | | | 58.19 | | | | | | 13,388,450 | | | | | | $ | | | 3,794 | | |

| AIG | | | $ | | | 100.00 | | | | | | $ | | | 67.91 | | | | | | $ | | | 90.72 | | | | | | $ | | | 69.62 | | | | | | $ | | | 107.16 | | | | | | $ | | | 121.89 | | |

| S&P 500 | | | | | | 100.00 | | | | | | | | | 95.62 | | | | | | | | | 125.72 | | | | | | | | | 148.85 | | | | | | | | | 191.58 | | | | | | | | | 156.88 | | |

| S&P 500 Property & Casualty Insurance Index | | | | | | 100.00 | | | | | | | | | 95.31 | | | | | | | | | 119.97 | | | | | | | | | 128.31 | | | | | | | | | 153.05 | | | | | | | | | 181.93 | | |

| S&P 500 Life & Health Insurance | | | | | | 100.00 | | | | | | | | | 79.23 | | | | | | | | | 97.60 | | | | | | | | | 88.35 | | | | | | | | | 120.76 | | | | | | | | | 133.25 | | |

| [added: 42 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 41 | | |]

Forward-looking statements are often preceded by, followed by or include words such as “will,” “believe,” “anticipate,” “expect,” “expectations,” “intend,” “plan,” “strategy,” “prospects,” “project,” “anticipate,” “should,” “guidance,” “outlook,” “confident,” “focused on achieving,” “view,” “target,” “goal,” [removed: “estimate,”] [added: “estimate”] and other words of similar meaning in connection with a discussion of future operating or financial performance.

| [removed: 42 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 43 | | |]

Factors that could cause AIG’s actual results to differ, possibly materially, from those in specific projections, [added: targets,] goals, [added: plans,] assumptions and [added: other] forward-looking statements include, without limitation:

- the [removed: effects] [added: impact] of [added: adverse developments affecting] economic conditions in the markets in which AIG and its businesses operate in the U.S. and [removed: globally and any changes therein,] [added: globally,] including [added: adverse developments related to] financial market conditions, macroeconomic trends, fluctuations in interest rates and foreign currency exchange rates, inflationary [added: pressures, including social inflation,] pressures [removed: and] [added: on the commercial real estate market,] an economic slowdown or recession, [removed: each of which may also be affected by] [added: any potential U.S. federal government shutdown and] geopolitical events or conflicts, including the conflict between Russia and [removed: Ukraine;][added: Ukraine and the conflict in Israel and the surrounding areas;]

- [removed: the] occurrence of catastrophic events, both natural and man-made, including [removed: geopolitical events and conflicts, civil unrest and] the effects of climate [removed: change;][added: change, geopolitical events and conflicts and civil unrest;]

- disruptions in the availability [added: or accessibility] of AIG's or a third party’s information technology [removed: infrastructure,] [added: systems,] including hardware and software, [removed: resulting from] [added: infrastructure or networks, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to] cyberattacks, data security breaches, or infrastructure vulnerabilities;

- AIG’s ability to successfully dispose of, monetize and/or acquire businesses or assets or successfully integrate acquired [removed: businesses;][added: businesses, and the anticipated benefits thereof;]

- the effects of sanctions, including those related to the conflict between Russia and [removed: Ukraine] [added: Ukraine,] and the failure to comply with those sanctions;

- the impact of [removed: COVID-19] [added: epidemics, pandemics] and [removed: its variants or] other [removed: pandemics] [added: public health crises] and responses thereto; [added: and]

- AIG’s ability to effectively execute on [removed: environmental, social and governance] [added: sustainability] targets and standards; [removed: and]

Risk Factors of this Annual Report; [removed: and][added: and.]

| [added: 44 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 43 | | |]

| [Use of Non-GAAP [removed: Measures](#if9f982e359be4d0bb8fe661b922414ee_376)] [added: Measures](#i3bdcfcee27954b6aae3316a5ec2a29ce_304)] | | | [removed: [45](#if9f982e359be4d0bb8fe661b922414ee_376)] [added: [46](#i3bdcfcee27954b6aae3316a5ec2a29ce_304)] | | |

| [Critical Accounting [removed: Estimates](#if9f982e359be4d0bb8fe661b922414ee_379)] [added: Estimates](#i3bdcfcee27954b6aae3316a5ec2a29ce_307)] | | | [removed: [47](#if9f982e359be4d0bb8fe661b922414ee_379)] [added: [48](#i3bdcfcee27954b6aae3316a5ec2a29ce_307)] | | |

| [removed: AIG['s Outlook – Industry and Economic Factors](#if9f982e359be4d0bb8fe661b922414ee_409) | | | [61](#if9f982e359be4d0bb8fe661b922414ee_409)] [added: INDUSTRY AND ECONOMIC FACTORS] | | |

| [Consolidated Results of [removed: Operations](#if9f982e359be4d0bb8fe661b922414ee_418)] [added: Operations](#i3bdcfcee27954b6aae3316a5ec2a29ce_361)] | | | [removed: [64](#if9f982e359be4d0bb8fe661b922414ee_418)] [added: [60](#i3bdcfcee27954b6aae3316a5ec2a29ce_361)] | | |

| [Business Segment [removed: Operations](#if9f982e359be4d0bb8fe661b922414ee_442)] [added: Operations](#i3bdcfcee27954b6aae3316a5ec2a29ce_388)] | | | [removed: [68](#if9f982e359be4d0bb8fe661b922414ee_442)] [added: [65](#i3bdcfcee27954b6aae3316a5ec2a29ce_388)] | | |

| [removed: [Life] [added: Life] and [removed: Retirement](#if9f982e359be4d0bb8fe661b922414ee_463)] [added: Retirement:] | | | [removed: [75](#if9f982e359be4d0bb8fe661b922414ee_463)] | | | [added: | | | | | | | | | | | |]

[removed: | [Life and Annuity Future Policy Benefits, Policyholder Contract Deposits and DAC](#if9f982e359be4d0bb8fe661b922414ee_535) | | | [100](#if9f982e359be4d0bb8fe661b922414ee_535) | | |][added: LIFE AND ANNUITY FUTURE POLICY BENEFITS, POLICYHOLDER CONTRACT DEPOSITS AND MARKET RISK BENEFITS]

[added: ITEM 7] | [removed: [Liquidity] [added: Liquidity] and Capital [removed: Resources](#if9f982e359be4d0bb8fe661b922414ee_544) | | | [108](#if9f982e359be4d0bb8fe661b922414ee_544) | | |][added: Resources]

[removed: | [Liquidity and Capital Resources Highlights](#if9f982e359be4d0bb8fe661b922414ee_550) | | | [109](#if9f982e359be4d0bb8fe661b922414ee_550) | | |][added: LIQUIDITY AND CAPITAL RESOURCES HIGHLIGHTS OF COREBRIDGE]

| [Analysis of Sources and Uses of [removed: Cash](#if9f982e359be4d0bb8fe661b922414ee_553)] [added: Cash](#i3bdcfcee27954b6aae3316a5ec2a29ce_484)] | | | [removed: [110](#if9f982e359be4d0bb8fe661b922414ee_553)] [added: [106](#i3bdcfcee27954b6aae3316a5ec2a29ce_484)] | | |

| [Liquidity and Capital Resources of AIG Parent and [removed: Subsidiaries](#if9f982e359be4d0bb8fe661b922414ee_556)] [added: Subsidiaries](#i3bdcfcee27954b6aae3316a5ec2a29ce_487)] | | | [removed: [110](#if9f982e359be4d0bb8fe661b922414ee_556)] [added: [107](#i3bdcfcee27954b6aae3316a5ec2a29ce_487)] | | |

| [Off-Balance Sheet Arrangements and Commercial [removed: Commitments](#if9f982e359be4d0bb8fe661b922414ee_565)] [added: Commitments](#i3bdcfcee27954b6aae3316a5ec2a29ce_496)] | | | [removed: [113](#if9f982e359be4d0bb8fe661b922414ee_565)] [added: [110](#i3bdcfcee27954b6aae3316a5ec2a29ce_496)] | | |

[removed: | [Repurchases] [added: Repurchases] of AIG Common [removed: Stock](#if9f982e359be4d0bb8fe661b922414ee_586) | | | [116](#if9f982e359be4d0bb8fe661b922414ee_586) | | |][added: Stock(a)]

| [Risk Appetite, Limits, Identification and [removed: Measurement](#if9f982e359be4d0bb8fe661b922414ee_802)] [added: Measurement](#i3bdcfcee27954b6aae3316a5ec2a29ce_979)] | | | [removed: [117](#if9f982e359be4d0bb8fe661b922414ee_802)] [added: [114](#i3bdcfcee27954b6aae3316a5ec2a29ce_979)] | | |

| [removed: 44 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 45 | | |]

Book value per common share, excluding accumulated other comprehensive income (loss) (AOCI) adjusted for the cumulative unrealized gains and losses related to Fortitude Re funds withheld assets and deferred tax assets (DTA) (Adjusted book value per common share) is used to show the amount of our net worth on a per-common share basis after eliminating items that can fluctuate significantly from period to period including changes in fair value [added: (1)] of AIG’s available for sale securities portfolio, [added: (2) of market risk benefits attributable to our own credit risk and (3) due to discount rates used to measure traditional and limited payment long-duration insurance contracts,] foreign currency translation adjustments and U.S. tax attribute deferred tax assets.

We believe this measure is useful to investors because it eliminates items that can fluctuate significantly from period to period, including changes in fair value [added: (1)] of [removed: our] [added: AIG’s] available for sale securities portfolio, [added: (2) of market risk benefits attributable to our own credit risk and (3) due to discount rates used to measure traditional and limited payment long-duration insurance contracts,] foreign currency translation adjustments and U.S. tax attribute deferred tax assets.

| [added: 46 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 45 | | |]

- changes in benefit reserves [removed: and deferred policy acquisition costs (DAC), value of business acquired (VOBA), and deferred sales inducements (DSI)] related to net realized gains and losses;

- all net realized gains and losses except earned income (periodic settlements and changes in settlement accruals) on derivative instruments used for [removed: non- qualifying] [added: non-qualifying] (economic) hedging or for asset replication.

| [removed: 46 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 47 | | |]

| •loss reserves; [removed: •future] [added: •valuation of future] policy [removed: benefits for life] [added: benefit liabilities] and [removed: accident] [added: recognition of measurement gains] and [removed: health insurance contracts; •guaranteed] [added: losses; •valuation of MRBs related to guaranteed] benefit features of variable annuity, fixed annuity and fixed index annuity products; •valuation of embedded derivative liabilities for fixed index annuity and [added: index universal] life products; [removed: •estimated gross profits to value deferred acquisition costs and unearned revenue for investment-oriented products;] •reinsurance assets, including the allowance for credit losses and disputes; •goodwill impairment; •allowance for credit losses on certain investments, primarily on loans and available for sale fixed maturity securities; •fair value measurements of certain financial assets and financial liabilities; and •income taxes, in particular the recoverability of our deferred tax asset and establishment of provisions for uncertain tax positions. | | |

Because these estimates are subject to the outcome of future [removed: events, changes in estimates are common given that] [added: events and because] loss trends vary and time is often required for changes in trends to be recognized and [removed: confirmed.][added: confirmed, changes in estimates are common.]

| [added: 48 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 47 | | |]

IBNR for claims arising from catastrophic events or events of unusual severity would be determined [removed: in close collaboration with] [added: taking into account information known by] the claims [removed: department’s knowledge of known information,] [added: department,] using alternative techniques or expected percentages of ultimate loss emergence based on historical emergence of similar events or claim types.

| [removed: 48 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [added: 49 | | |]

| [added: 50 | | |] AIG \| [removed: 2022] [added: 2023] Form 10-K | | | [removed: 49 | | |]

- AIG's ability to effectively implement restructuring initiatives and potential cost-savings opportunities;

- AIG's ability to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives;

- AIG’s ability to address evolving stakeholder expectations and regulatory requirements with respect to environmental, social and governance matters;

| [Overview](#i3bdcfcee27954b6aae3316a5ec2a29ce_343) | | | [57](#i3bdcfcee27954b6aae3316a5ec2a29ce_343) | | |

| [General Insurance](#i3bdcfcee27954b6aae3316a5ec2a29ce_391) | | | [66](#i3bdcfcee27954b6aae3316a5ec2a29ce_391) | | |

| [Other Operations](#i3bdcfcee27954b6aae3316a5ec2a29ce_430) | | | [84](#i3bdcfcee27954b6aae3316a5ec2a29ce_430) | | |

| [Investments](#i3bdcfcee27954b6aae3316a5ec2a29ce_433) | | | [86](#i3bdcfcee27954b6aae3316a5ec2a29ce_433) | | |

| [Overview](#i3bdcfcee27954b6aae3316a5ec2a29ce_436) | | | [86](#i3bdcfcee27954b6aae3316a5ec2a29ce_436) | | |

| [Investment Highlights](#i3bdcfcee27954b6aae3316a5ec2a29ce_439) in 2023 | | | [86](#i3bdcfcee27954b6aae3316a5ec2a29ce_439) | | |

| [Investment Strategies](#i3bdcfcee27954b6aae3316a5ec2a29ce_442) | | | [86](#i3bdcfcee27954b6aae3316a5ec2a29ce_442) | | |

| [Credit Ratings](#i3bdcfcee27954b6aae3316a5ec2a29ce_445) | | | [88](#i3bdcfcee27954b6aae3316a5ec2a29ce_445) | | |

| [Loss Reserves](#i3bdcfcee27954b6aae3316a5ec2a29ce_451) | | | [96](#i3bdcfcee27954b6aae3316a5ec2a29ce_451) | | |

| [Liquidity and Capital Resources](#i3bdcfcee27954b6aae3316a5ec2a29ce_472) | | | [104](#i3bdcfcee27954b6aae3316a5ec2a29ce_472) | | |

| [Overview](#i3bdcfcee27954b6aae3316a5ec2a29ce_475) | | | [104](#i3bdcfcee27954b6aae3316a5ec2a29ce_475) | | |

| [Liquidity and Capital Resources Highlights](#i3bdcfcee27954b6aae3316a5ec2a29ce_478) | | | [104](#i3bdcfcee27954b6aae3316a5ec2a29ce_478) | | |

| [Liquidity and Capital Resources Highlights of Corebridge](#i3bdcfcee27954b6aae3316a5ec2a29ce_481) | | | [106](#i3bdcfcee27954b6aae3316a5ec2a29ce_481) | | |

| [Credit Facilities](#i3bdcfcee27954b6aae3316a5ec2a29ce_490) | | | [108](#i3bdcfcee27954b6aae3316a5ec2a29ce_490) | | |

| [Contractual Obligations](#i3bdcfcee27954b6aae3316a5ec2a29ce_493) | | | [109](#i3bdcfcee27954b6aae3316a5ec2a29ce_493) | | |

| [Debt](#i3bdcfcee27954b6aae3316a5ec2a29ce_499) | | | [111](#i3bdcfcee27954b6aae3316a5ec2a29ce_499) | | |

| [Credit Ratings](#i3bdcfcee27954b6aae3316a5ec2a29ce_505) | | | [112](#i3bdcfcee27954b6aae3316a5ec2a29ce_505) | | |

| [Financial Strength Ratings](#i3bdcfcee27954b6aae3316a5ec2a29ce_508) | | | [112](#i3bdcfcee27954b6aae3316a5ec2a29ce_508) | | |

| [Regulation and Supervision](#i3bdcfcee27954b6aae3316a5ec2a29ce_511) | | | [113](#i3bdcfcee27954b6aae3316a5ec2a29ce_511) | | |

| [Dividends](#i3bdcfcee27954b6aae3316a5ec2a29ce_514) | | | [113](#i3bdcfcee27954b6aae3316a5ec2a29ce_514) | | |

| [Repurchases of AIG Common Stock](#i3bdcfcee27954b6aae3316a5ec2a29ce_517) | | | [113](#i3bdcfcee27954b6aae3316a5ec2a29ce_517) | | |

| [Dividend Restrictions](#i3bdcfcee27954b6aae3316a5ec2a29ce_520) | | | [113](#i3bdcfcee27954b6aae3316a5ec2a29ce_520) | | |

| [Overview](#i3bdcfcee27954b6aae3316a5ec2a29ce_529) | | | [114](#i3bdcfcee27954b6aae3316a5ec2a29ce_529) | | |

| [Risk Governance Structure](#i3bdcfcee27954b6aae3316a5ec2a29ce_976) | | | [114](#i3bdcfcee27954b6aae3316a5ec2a29ce_976) | | |

| [Credit Risk Management](#i3bdcfcee27954b6aae3316a5ec2a29ce_982) | | | [115](#i3bdcfcee27954b6aae3316a5ec2a29ce_982) | | |

| [Market Risk Management](#i3bdcfcee27954b6aae3316a5ec2a29ce_532) | | | [115](#i3bdcfcee27954b6aae3316a5ec2a29ce_532) | | |

| [Liquidity Risk Management](#i3bdcfcee27954b6aae3316a5ec2a29ce_985) | | | [117](#i3bdcfcee27954b6aae3316a5ec2a29ce_985) | | |

| [Operational Risk Management](#i3bdcfcee27954b6aae3316a5ec2a29ce_988) | | | [117](#i3bdcfcee27954b6aae3316a5ec2a29ce_988) | | |

| [Insurance Risks](#i3bdcfcee27954b6aae3316a5ec2a29ce_991) | | | [118](#i3bdcfcee27954b6aae3316a5ec2a29ce_991) | | |

| [Glossary](#i3bdcfcee27954b6aae3316a5ec2a29ce_538) | | | [122](#i3bdcfcee27954b6aae3316a5ec2a29ce_538) | | |

| [Acronyms](#i3bdcfcee27954b6aae3316a5ec2a29ce_541) | | | [124](#i3bdcfcee27954b6aae3316a5ec2a29ce_541) | | |

- net change in market risk benefits (MRBs);

Benefit liabilities are subsequently remeasured periodically to reflect changes in policy assumptions and actual versus expected experience and are recognized as remeasurement gains and losses, a component of policyholder benefits.

Liabilities are accreted using an upper-medium grade (low credit risk) fixed income instrument yield that is locked-in at policy issuance.

The liabilities are remeasured at the balance sheet date using a current upper-medium grade yield with changes in the liabilities reported in Other comprehensive income (loss) (OCI).

GMxBs are recognized as MRBs and can be assets or liabilities, and represent the expected value of benefits in excess of the projected account value, with changes in fair value of MRBs recognized in the Consolidated Statements of Income (Loss) and the portion of the fair value change attributable to our own credit risk recognized in OCI.

| Fair Value Methodology | | | Guaranteed minimum benefits on annuity products are market risk benefits that are required to be measured at fair value with changes in the fair value of the liabilities recorded in changes in the fair value of market risk benefits, except for changes related to the Company's own credit risk which are recorded in AOCI. The fair value of these benefits is based on assumptions that a market participant would use in valuing these MRBs. The Company applies a non-option-based approach for variable products, and an option-based approach for fixed index and fixed products. Under the non-option-based approach, a portion of actual fees (i.e., attributed fees) is determined such that the present value of expected benefits less attributed fees is zero at issue. This calculated ratio is locked in and utilized in each policy valuation going forward and results in an MRB value of zero at policy issue. Under the option-based approach, the MRB value at issue represents the present value of expected benefits after account value exhaustion. There is no calculated attributed fee ratio under this approach; as such, the calculated MRB liability at inception requires an equal and offsetting adjustment to the underlying host contract. Consistent with the non-option-based approach, this results in no gains or losses recognized upon policy issuance. The fair value of the market risk benefits, which are Level 3 assets and liabilities, is based on a risk-neutral framework and incorporates actuarial and capital market assumptions related to projected cash flows over the expected lives of the contracts. *For additional information on how we value for MRBs, see Note 14 to the Consolidated Financial Statements, and for information on fair value measurement of these MRBs, including how we incorporate our own non-performance risk, see Note 5 to the Consolidated Financial Statements.* | | |

| | | | | | | |

| --- | --- | --- | --- | --- | --- | --- |

- changes in judgments concerning potential cost-saving opportunities;

- AIG's ability to effectively implement changes under AIG 200, including the ability to realize cost savings;

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| [Executive Summary](#if9f982e359be4d0bb8fe661b922414ee_382) | | | [60](#if9f982e359be4d0bb8fe661b922414ee_382) | | |

| [Overview](#if9f982e359be4d0bb8fe661b922414ee_385) | | | [60](#if9f982e359be4d0bb8fe661b922414ee_385) | | |

| [General Insurance](#if9f982e359be4d0bb8fe661b922414ee_445) | | | [69](#if9f982e359be4d0bb8fe661b922414ee_445) | | |

| [Other Operations](#if9f982e359be4d0bb8fe661b922414ee_511) | | | [85](#if9f982e359be4d0bb8fe661b922414ee_511) | | |

| [Investments](#if9f982e359be4d0bb8fe661b922414ee_514) | | | [87](#if9f982e359be4d0bb8fe661b922414ee_514) | | |

| [Overview](#if9f982e359be4d0bb8fe661b922414ee_517) | | | [87](#if9f982e359be4d0bb8fe661b922414ee_517) | | |

| [Investment Highlights](#if9f982e359be4d0bb8fe661b922414ee_520) in 2022 | | | [87](#if9f982e359be4d0bb8fe661b922414ee_520) | | |

| [Investment Strategies](#if9f982e359be4d0bb8fe661b922414ee_523) | | | [87](#if9f982e359be4d0bb8fe661b922414ee_523) | | |

| [Credit Ratings](#if9f982e359be4d0bb8fe661b922414ee_526) | | | [89](#if9f982e359be4d0bb8fe661b922414ee_526) | | |

| [Insurance Reserves](#if9f982e359be4d0bb8fe661b922414ee_529) | | | [96](#if9f982e359be4d0bb8fe661b922414ee_529) | | |

| [Loss Reserves](#if9f982e359be4d0bb8fe661b922414ee_529) | | | [96](#if9f982e359be4d0bb8fe661b922414ee_529) | | |

| [Overview](#if9f982e359be4d0bb8fe661b922414ee_547) | | | [108](#if9f982e359be4d0bb8fe661b922414ee_547) | | |

| [Credit Facilities](#if9f982e359be4d0bb8fe661b922414ee_559) | | | [111](#if9f982e359be4d0bb8fe661b922414ee_559) | | |

| [Contractual Obligations](#if9f982e359be4d0bb8fe661b922414ee_562) | | | [112](#if9f982e359be4d0bb8fe661b922414ee_562) | | |

| [Debt](#if9f982e359be4d0bb8fe661b922414ee_568) | | | [114](#if9f982e359be4d0bb8fe661b922414ee_568) | | |

| [Credit Ratings](#if9f982e359be4d0bb8fe661b922414ee_571) | | | [115](#if9f982e359be4d0bb8fe661b922414ee_571) | | |

| [Financial Strength Ratings](#if9f982e359be4d0bb8fe661b922414ee_574) | | | [115](#if9f982e359be4d0bb8fe661b922414ee_574) | | |

| [Regulation and Supervision](#if9f982e359be4d0bb8fe661b922414ee_580) | | | [116](#if9f982e359be4d0bb8fe661b922414ee_580) | | |

| [Dividends](#if9f982e359be4d0bb8fe661b922414ee_583) | | | [116](#if9f982e359be4d0bb8fe661b922414ee_583) | | |

| [Dividend Restrictions](#if9f982e359be4d0bb8fe661b922414ee_589) | | | [116](#if9f982e359be4d0bb8fe661b922414ee_589) | | |

| [Enterprise Risk Management](#if9f982e359be4d0bb8fe661b922414ee_592) | | | [117](#if9f982e359be4d0bb8fe661b922414ee_592) | | |

| [Overview](#if9f982e359be4d0bb8fe661b922414ee_595) | | | [117](#if9f982e359be4d0bb8fe661b922414ee_595) | | |

| [Risk Governance Structure](#if9f982e359be4d0bb8fe661b922414ee_799) | | | [117](#if9f982e359be4d0bb8fe661b922414ee_799) | | |

| [Credit Risk Management](#if9f982e359be4d0bb8fe661b922414ee_805) | | | [118](#if9f982e359be4d0bb8fe661b922414ee_805) | | |

| [Market Risk Management](#if9f982e359be4d0bb8fe661b922414ee_808) | | | [119](#if9f982e359be4d0bb8fe661b922414ee_808) | | |

| [Liquidity Risk Management](#if9f982e359be4d0bb8fe661b922414ee_811) | | | [122](#if9f982e359be4d0bb8fe661b922414ee_811) | | |

| [Operational Risk Management](#if9f982e359be4d0bb8fe661b922414ee_814) | | | [123](#if9f982e359be4d0bb8fe661b922414ee_814) | | |

| [Insurance Risks](#if9f982e359be4d0bb8fe661b922414ee_817) | | | [123](#if9f982e359be4d0bb8fe661b922414ee_817) | | |

| [Glossary](#if9f982e359be4d0bb8fe661b922414ee_604) | | | [129](#if9f982e359be4d0bb8fe661b922414ee_604) | | |

| [Acronyms](#if9f982e359be4d0bb8fe661b922414ee_607) | | | [131](#if9f982e359be4d0bb8fe661b922414ee_607) | | |

ITEM 7 | Critical Accounting Estimates

| Line of Business or Category | | | Key Assumptions | | |

The assumptions also include margins for adverse deviation, principally for key assumptions such as mortality and interest rates used to discount cash flows, to reflect uncertainty given that actual experience might deviate from these assumptions.

Establishing margins at contract inception requires management judgment.

As described in Note [removed: 21] [added: 23] to the consolidated financial statements, as of December 31, [removed: 2022,] [added: 2023,] the Company had a net U.S. federal deferred tax asset of [removed: $13.9] [added: $13.6] billion, [removed: $5.2] [added: $4.6] billion of which related to U.S. tax attributes of AIG's consolidated federal income tax group with a limited carryforward period.

As of December 31, [removed: 2022,] [added: 2023,] management determined that it is no longer more-likely-than-not that [removed: $713] [added: $300] million of the Company’s deferred tax assets related to tax attribute carryforwards of AIG's consolidated federal income tax group will be utilized prior to [removed: expiration.][added: expiration and reduced their beginning of the year valuation allowance by $405 million.]

The principal considerations for our determination that performing procedures relating to the recoverability of the U.S. federal deferred tax asset is a critical audit matter are (i) the significant judgment by management when developing their estimate of the recoverability, which in turn led to a high degree of auditor subjectivity and judgment in performing the audit procedures relating to the forecasts of future income for [removed: each of] the [removed: businesses,] [added: non-life business,] assumptions about future macroeconomic and company specific conditions and events, tax attribute carryforward periods, and tax planning strategies, (ii) the significant audit effort and judgment in evaluating the audit evidence related to the recoverability of the U.S. federal deferred tax asset, and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

| AIG \| [removed: 2022] [added: 2023] Form 10-K | | | 137 | | |

| *(in millions, except for share data)* | | | December 31, [removed: 2022] [added: 2023] | | | | | | [removed: December] [added: December] 31, [removed: 2021] [added: 2022] | | | | | |

| Bonds available for sale, at fair value, net of allowance for credit losses of [removed: $186] [added: $162] in [removed: 2022] [added: 2023] and [removed: $98] [added: $186] in [removed: 2021] [added: 2022] (amortized cost: [removed: 2022] [added: 2023] - [removed: $255,993; 2021] [added: $253,035; 2022] - [removed: $259,210)*] [added: $255,993)*] | | | $ | | | [removed: 226,156] [added: 231,733] | | | $ | | | [removed: 277,202] [added: 226,156] | | |

| Other bond securities, at fair value (See Note [removed: 5)*] [added: 6)*] | | | | | | [removed: 4,485] [added: 5,241] | | | | | | [removed: 6,278] [added: 4,485] | | |

| Equity securities, at fair value (See Note [removed: 5)*] [added: 6)*] | | | | | | [removed: 575] [added: 728] | | | | | | [removed: 739] [added: 575] | | |

| Mortgage and other loans receivable, net of allowance for credit losses of [removed: $38,351] [added: $38,473] in [removed: 2022] [added: 2023] and [removed: $629] [added: $38,351] in [removed: 2021*] [added: 2022*] | | | | | | [removed: 49,605] [added: 51,553] | | | | | | [removed: 46,048] [added: 49,605] | | |

| Other invested assets (portion measured at fair value: [removed: 2022] [added: 2023] - [removed: $12,042; 2021] [added: $11,733; 2022] - [removed: $10,504)*] [added: $12,042)*] | | | | | | [removed: 15,953] [added: 16,217] | | | | | | [removed: 15,668] [added: 15,953] | | |

| Short-term investments, including restricted cash of [removed: $140] [added: $4] in [removed: 2022] [added: 2023] and [removed: $197] [added: $140] in [removed: 2021] [added: 2022] (portion measured at fair value: [removed: 2022] [added: 2023] - [removed: $5,708; 2021] [added: $10,772; 2022] - [removed: $4,426)*] [added: $5,708)*] | | | | | | [removed: 12,376] [added: 17,200] | | | | | | [removed: 13,357] [added: 12,376] | | |

| Total investments | | | | | | [removed: 309,150] [added: 322,672] | | | | | | [removed: 359,292] [added: 309,150] | | |

| [removed: Cash*] [added: Cash] | | | | | | [removed: 2,043] [added: $] | [added: 2,155] | | | | | [removed: 2,198] [added: $] | [added: 2,043] | | [added: | | | $ | 2,198 | |]

| Accrued investment income* | | | | | | [removed: 2,376] [added: 2,588] | | | | | | [removed: 2,239] [added: 2,376] | | |

| Premiums and other receivables, net of allowance for credit losses and disputes of [removed: $169] [added: $139] in [removed: 2022] [added: 2023] and [removed: $185] [added: $169] in [removed: 2021] [added: 2022] | | | | | | [removed: 13,243] [added: 10,561] | | | | | | [removed: 12,409] [added: 13,243] | | |

| [removed: Reinsurance] [added: Reinsurance] assets - Fortitude Re, net of allowance for credit losses and [removed: disputes of $0 in 2022 and $0 in 2021] [added: disputes(c)] | | | | | | [removed: 32,159] | | | | | | [removed: 33,365] | | | [added: | | | | | | | | | | | | | | |]

| [removed: Reinsurance] [added: Reinsurance] assets - other, net of allowance for credit losses and [removed: disputes of $295 in 2022 and $333 in 2021] [added: disputes(a)] | | | | | | [removed: 39,434] | | | | | | [removed: 40,919] | | | [added: | | | | | | | | | | | | | | |]

| Deferred income taxes | | | | | | [removed: 15,144] | | | | | | [removed: 11,714] [added: 47] | | | [added: | | | — | | | | | | 47 | | |]

[removed: |] Deferred [removed: policy acquisition costs | | | | | | 15,518 | | | | | | 10,514 | | |][added: Policy Acquisition Costs]

| Other assets, net of allowance for credit losses of $49 in [removed: 2022] [added: 2023] and $49 in [removed: 2021,] [added: 2022,] including restricted cash of [removed: $33] [added: $45] in [removed: 2022] [added: 2023] and [removed: $32] [added: $33] in [removed: 2021] [added: 2022] (portion measured at fair value: [removed: 2022] [added: 2023] - [removed: $621; 2021] [added: $754; 2022] - [removed: $957)*] [added: $621)*] | | | | | | [removed: 12,714] [added: 13,089] | | | | | | [removed: 14,351] [added: 12,384] | | |

| Separate account assets, at fair value | | | | | | [removed: 84,853] [added: 91,005] | | | | | | [removed: 109,111] [added: 84,853] | | |

| Total assets | | | [removed: $] | | | [removed: 526,634] [added: 526,634] | | | [removed: $] | | | [removed: 596,112] [added: (4,406)] | | | [added: | | | 522,228 | | |]