American International Group, INC. 10-K Filing

Ticker: AIG · Form: 10-K · Filed: Feb 13, 2025 · CIK: 5272

Sentiment: neutral

Filing Stats: 4,276 words · 17 min read · ~14 pages · Grade level 16.1 · Accepted 2025-02-13 16:49:44

Key Financial Figures

Filing Documents

, Items 10, 11, 12, 13 and 14

Part III, Items 10, 11, 12, 13 and 14 AMERICAN INTERNATIONAL GROUP, INC. ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2024 TABLE OF CONTENTS FORM 10-K Item Number Description Page Part I ITEM 1

Business

Business 2 Our Global Business Overview 2 Operating Structure 4 How We Generate Revenues and Profitability 4 Human Capital Management 5 Regulation 6 Available Information about AIG 11 ITEM 1A

Risk Factors

Risk Factors 12 ITEM 1B Unresolved Staff Comments 30 ITEM 1C Cybersecurity 31 ITEM 2

Properties

Properties 32 ITEM 3

Legal Proceedings

Legal Proceedings 32 ITEM 4 Mine Safety Disclosures 32 Part II ITEM 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 ITEM 6 [Reserved] 34 ITEM 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Cautionary Statement Regarding Forward-Looking Information and Factors That May Affect Future Results 35 Use of Non-GAAP Measures 38 Critical Accounting Estimates 40 Executive Summary 47 Consolidated Results of Operations 48 Business Segment Operations 53 Investments 62 Insurance Reserves 70 Liquidity and Capital Resources 74 Enterprise Risk Management 81 Glossary 88 Acronyms 90 ITEM 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 90 ITEM 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 91 Reference to Financial Statements and Schedules 91 ITEM 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 191 ITEM 9A

Controls and Procedures

Controls and Procedures 191 ITEM 9B Other Information 192 ITEM 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 192 Part III ITEM 10 Directors, Executive Officers and Corporate Governance 193 ITEM 11

Executive Compensation

Executive Compensation 194 ITEM 12

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

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 194 ITEM 13 Certain Relationships and Related Transactions, and Director Independence 194 ITEM 14 Principal Accountant Fees and Services 194 Part IV ITEM 15 Exhibits and Financial Statement Schedules 195 ITEM 16 Form 10-K Summary 197

Signatures

Signatures 198 AIG | 2024 Form 10-K 1 TABLE OF CONTENTS Part I

| Business

ITEM 1 | Business Sustaining Industry Leadership Momentum Creating Value through Profitable Growth and a Culture of Underwriting and Operational Excellence American International Group, Inc. (NYSE: AIG) is a leading global insurance organization. AIG provides insurance solutions that help businesses and individuals in over 200 countries and jurisdictions protect their assets and manage risks through AIG operations, licenses and authorizations as well as 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. AIG's achievements in 2024 demonstrate continued strength in executing multiple, complex initiatives simultaneously and with quality. With the deconsolidation of Corebridge Financial, Inc. (Corebridge) complete, a strong underwriting portfolio and culture, and excellent financial strength, AIG enters 2025 with strong momentum. In this Annual Report, unless otherwise mentioned or unless the context indicates otherwise, we use the terms "AIG," the "Company," "we," "us" and "our" to refer to American International Group, Inc., a Delaware corporation, and its consolidated subsidiaries. We use the term "AIG Parent" to refer solely to American International Group, Inc., and not to any of its consolidated subsidiaries. About AIG World-Class Underwriting and Claims Expertise executed through franchises that are among the leaders in their geographies and segments, providing differentiated service. Global Reach and Breadth of Loyal Customers including millions of clients in over 200 countries and jurisdictions, ranging from individuals to small and medium-sized businesses to multi-national Fortune 500 companies. Broad and Long-Standing Distribution Relationships with brokers, agents, advisors, marketplaces and other distributors strengthened through AIG's dedication to quality. Global

| Business

ITEM 1 | Business AIG's global team is both results oriented and focused on how we achieve positive outcomes. This balance creates an aligned and inclusive culture that enables further progress. Unifying under our Purpose and Values empowers AIG colleagues to be conduits of positive change – delivering exceptional client service, enhanced shareholder value and a better experience for all stakeholders. AIG's five Values guide colleagues' 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 2025 Priorities Deliver Sustainable Underwriting Results and Profitability Growth - Continue to focus on a culture of underwriting excellence and prudent expense management to support profitable growth. Unlock the Full Potential of AIG's Less Complex Operating Structure - Continue to refine our new operating structure to operate efficiently as a lean, agile and high-performing company. Invest in our Talent for the Future AIG - Foster a performance-driven culture built on quality, excellence and continuous improvement through ongoing education and workplace learning opportunities. Expand our Data and Digital Strategies - Responsibly scale the use of generative artificial intelligence (AI), focus on continued enhancement of data quality to inform decision making and further strengthen workflow capabilities across the company to accelerate our strategic business objectives. Preserve and Harness Balance Sheet Strength and Financial Flexibility - Execute on our balanced capital management plan in order to deliver shareholder value and support AIG's strategic flexibility. 2024 Highlights Delivered Strong Finan

| Business

ITEM 1 | Business Operating Structure In the fourth quarter of 2024, the Company realigned its organizational structure and the composition of its reportable segments to reflect changes in how the Company manages its operations, specifically the level at which its chief operating decision makers (CODMs) regularly review operating results and allocate resources. As of December 31, 2024, AIG reports the results of its businesses through three segments and Other Operations. The three segments are North America Commercial, International Commercial and Global Personal. Other Operations predominantly consists of Net Investment Income from our AIG Parent liquidity portfolio, Corebridge dividend income, corporate General operating expenses, and Interest expense. Prior years' presentations have been recast to conform to the new reportable segments. Our General Insurance business (General Insurance) consists of our three segments and the Net investment income related to our insurance operations. In September 2022, AIG closed on the initial public offering of Corebridge. Since then and through June 9, 2024, AIG has sold portions of its interests in Corebridge through secondary public offerings. On June 9, 2024, AIG held 48.4 percent of Corebridge common stock, waived its right to majority representation on the Corebridge Board of Directors and one of AIG's designees resigned from the Corebridge Board of Directors as of June 9, 2024 (the Deconsolidation Date). As a result, AIG met the requirements for the deconsolidation of Corebridge. The historical financial results of Corebridge, for all periods presented, are reflected in these Consolidated Financial Statements as discontinued operations. For additional information on our segments, see Part II, Item 7. MD&A – Business Segment Operations and Note 3 to the Consolidated Financial Statements, and for information regarding the separation of Life and Retirement and our global individual personal travel insurance and assist

| Business

ITEM 1 | Business Human Capital Management Our talented and dedicated colleagues are our greatest asset and support our culture of underwriting expertise and excellence. To this end, we place significant focus on human capital management; namely retaining, developing and attracting high caliber talent. 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 and compensation and benefits. Management periodically reports to the CMRC on our various human capital management initiatives and metrics, including succession planning for key roles. At December 31, 2024, we had approximately 22,200 employees based in approximately 46 countries, of which 47 percent are located in North America, 26 percent are in the Asia Pacific region and the remaining 27 percent are in the European, Middle East and Africa (EMEA region) and Latin America. We believe that we foster a constructive and healthy work environment for our employees. The key programs and initiatives that are designed to attract, develop and retain our workforce include: Competitive Compensation and Benefits. We seek to align compensation with individual and Company performance and provide the appropriate market-competitive incentives to attract, retain and motivate employees to achieve outstanding results. Management and the CMRC engage the services of third-party compensation consultants to help monitor the competitiveness of our incentive programs. We provide a performance-driven compensation structure that consists of base salary and, for eligible employees, short- and long-term incentives. We also offer comprehensive benefits to support the health, wellness, work-life balance and retirement preparedness/savings needs of our employees, including, for eligible employees, subsidized health care plans, life and disability insurance, wellness and mental health benef

| Business

ITEM 1 | Business Culture of Inclusion. 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 where all perspectives are welcome. Regulation GENERAL Our insurance subsidiaries are subject to extensive regulation and supervision in the jurisdictions in which our insurance businesses are located or operate. Insurance regulatory authorities in those jurisdictions are the primary regulators for those businesses; however, our operations are subject to regulation by many different types of regulatory authorities, including insurance, securities and derivatives regulators in the United States and abroad. Insurance regulators, other regulatory authorities, law enforcement agencies, and other governmental authorities from time to time make inquiries and conduct examinations or investigations regarding our compliance, as well as compliance by other companies in our industry, with applicable laws. In addition, regulation, legislation and administrative policies that are not limited in application solely to the insurance market may significantly affect the insurance industry and certain of our operations, including regulation, legislation and administrative policies related to privacy, cybersecurity, government sanctions, anti-discrimination, financial services, securities, taxation and climate change. See Item 1A. Risk Factors – Regulation – "Our businesses are heavily regulated and changes in laws and regulations may affect our operations, increase our insurance subsidiary capital requirements or reduce our profitability" . We expect that the U.S. and international regulations applicable to us and our regulated entities will continue to evolve for the foreseeable future. See Item 1A. Risk Factors – Regulation – "New laws and regulations or new interpretations of current laws and regulations, both domestically and internationally, may affect our businesses, results

| Business

ITEM 1 | Business As a holding company with no significant business operations of its own, AIG Parent depends on dividends from our subsidiaries to meet our obligations. U.S. state insurance laws typically provide that dividends in excess of certain prescribed limits are considered to be extraordinary dividends and require prior approval or non- disapproval from the applicable insurance regulator. Outside the U.S., insurers, subject to certain exceptions, are permitted to pay dividends subject to maintaining prescribed capital and solvency requirements and ensuring that dividends are made out of profits/retained earnings. Further, as part of their regulatory oversight processes, insurance regulators conduct periodic examinations of our insurance subsidiaries. Such examinations can cover a broad scope of the insurance subsidiary's operations, including the financial strength of the insurance subsidiary; sales, marketing and claims handling practices; risk management; capital and liquidity management; and information technology operations (including emerging technology risks). Insurance and securities regulators and other law enforcement agencies and attorneys general also, from time to time, make inquiries, issue data calls and conduct examinations or investigations regarding compliance with insurance and other laws or for informational purposes that can be company-specific or part of a broader industry-wide effort. There can be no assurance that any noncompliance with such applicable laws, regulations or guidance would not have a material adverse effect on our business or results of operations. REGULATORY REGIMES United States At the state-level, the National Association of Insurance Commissioners (NAIC) is a standard-setting and regulatory support organization created and governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. The NAIC is not a regulator, but it assists state insurance regul

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