AIG(AIG) - 2025 Q4 - Annual Report

Financial Performance - As of December 31, 2025, AIG reported approximately $41 billion in shareholders' equity and $9.3 billion in liquidity sources[16] - AIG's investment income and insurance premiums are the primary sources of revenue, with a focus on managing losses and expenses[31] - The company generates revenues primarily from insurance premiums and investment income, with profitability dependent on effective risk management and cost control[31] - AIG's insurance subsidiaries exceeded the Risk-Based Capital (RBC) thresholds as of December 31, 2025, indicating strong financial health[57] Workforce and Talent Management - The company has a global workforce of over 22,100 employees, with 27% in North America, 47% in Asia Pacific, and 26% in EMEA and Latin America[36] - In 2025, 38% of open positions were filled with internal talent, highlighting AIG's commitment to talent development and succession planning[44] - AIG's human capital management focuses on attracting and retaining talent, with competitive compensation and benefits programs in place[34][37] - The company offers extensive online learning programs to enhance employees' insurance and business knowledge, critical job skills, and continuing education credits[42] - AIG's Employee Assistance Program (EAP) provides confidential counseling and mental health resources to employees in nearly every country where it operates[38] - The company emphasizes building managerial capability through interactive learning experiences for people managers[43] Regulatory Environment - AIG's insurance subsidiaries are subject to extensive regulation, impacting operations and profitability due to evolving laws and regulations[46][48] - AIG is subject to Group Capital Calculation (GCC) requirements starting in 2024, aimed at evaluating capital position at the group level[66] - The Financial Stability Oversight Council (FSOC) can designate nonbank financial companies as systemically important, impacting regulatory oversight[65] - The National Association of Insurance Commissioners (NAIC) provides standardized accounting and reporting guidance for insurance companies[59] - AIG's insurance subsidiaries in Bermuda must comply with solvency and liquidity standards imposed by the Bermuda Monetary Authority[72] - The Monetary Authority of Singapore (MAS) regulates AIG's insurance subsidiary in Singapore, enforcing minimum capital and solvency requirements[73] - AIG's insurance subsidiaries are required to maintain prescribed capital and solvency requirements, ensuring financial stability and compliance with regulatory standards[54] - The Dodd-Frank Act established the Federal Insurance Office (FIO) to monitor the insurance industry and recommend prudential standards[63] Compliance and Risk Management - AIG is subject to various international laws and regulations regarding data protection and cybersecurity, including GDPR and CCPA[87][84] - AIG's cybersecurity policies require disclosure of material incidents and governance oversight, as mandated by the SEC[86] - The EU General Data Protection Regulation (GDPR) imposes fines of up to 4% of global revenue for serious infringements, affecting AIG's operations in the European Economic Area[87] - The California Consumer Privacy Act (CCPA) imposes significant privacy obligations on businesses handling data related to California residents, effective since January 1, 2020[84] - AIG actively monitors the regulatory landscape surrounding climate change and sustainability, addressing governance and risk management requirements[92] - The International Association of Insurance Supervisors (IAIS) has adopted a risk-based global Insurance Capital Standard (ICS) for internationally active insurance groups[79] - AIG is required to provide comprehensive resolution plans to global regulators starting in December 2024, as part of systemic risk management[78] Corporate Culture and Community Engagement - The company emphasizes a culture of inclusion and integrity, aiming to provide equal opportunities for all employees[45] - AIG has provided over 3,600 grants through the AIG Compassionate Colleagues Fund since its inception in 2021, supporting employees in financial hardship[39] - The AIG Compassionate Colleagues Fund has provided over 3,600 grants to employees in 19 countries since its inception in 2021[39] Business Operations - AIG operates through three segments: North America Commercial, International Commercial, and Global Personal, with General Insurance being a significant contributor to revenue[21] - AIG maintains strong distribution relationships with brokers and agents, enhancing its market presence and service quality[14] - The company operates in a highly competitive insurance industry, differentiating itself through underwriting excellence and tailored insurance solutions[28] - AIG's General Insurance segment includes major operating companies such as National Union Fire Insurance Company and American Home Assurance Company[22] - AIG has adopted a model bulletin on the use of AI in insurance, reflecting regulatory guidance on technology innovations in the marketplace[89]