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1For additional information regarding these products, see Item 1. Business – Regulation, Part II, Item 7. MD&A – Critical Accounting 2Estimates – Market Risk Benefits, and Notes 13 and 14 to the Consolidated Financial Statements.3Reinsurance may be unavailable or too expensive relative to its benefit, and may not be adequate to protect us against 4losses. 5Our subsidiaries are major purchasers of third-party reinsurance and we use reinsurance as part of our overall risk management 6strategy. While reinsurance does not discharge our subsidiaries from their obligation to pay claims for losses insured under our 7policies, it does make the reinsurer liable to the subsidiaries for the reinsured portion of the risk. Market conditions beyond our control 8have impacted and may in the future impact the availability and cost of reinsurance and could have a material adverse effect on our 9business, results of operations and financial condition. For example, reinsurance is typically more difficult or costly to obtain after a 10year or consecutive years with a large number of major catastrophes, the likelihood of which may be exacerbated by climate change. 11We have been and may, at certain times be, (i) forced to incur additional costs for reinsurance, (ii) unable to obtain sufficient 12reinsurance on acceptable terms, or (iii) unable to obtain reinsurance for certain parts of our business. In instances where reinsurance 13is more costly, insufficient on acceptable terms or unavailable, we have had to, and will in the future have to accept an increase in 14exposure to risk, reduce or stop writing certain lines of business written by our subsidiaries or seek alternatives in line with our risk 15limits, or a combination thereof. 16Additionally, we are exposed to credit risk with respect to our subsidiaries’ reinsurers to the extent the reinsurance receivable is not 17secured, or is inadequately secured by collateral or does not benefit from other credit enhancements. We also bear the risk that a 18reinsurer is, or may be, unwilling to pay amounts we have recorded as reinsurance recoverables for any reason, including that (i) the 19terms of the reinsurance contract do not reflect the intent of the parties to the contract or there is a disagreement between the parties 20as to their intent, or (ii) the terms of the contract cannot be legally enforced. In addition, we bear the risk that (i) the terms of the 21contract are interpreted by a court or arbitration panel differently than expected, (ii) the reinsurance transaction performs differently 22than we anticipated compared to the original structure, terms or conditions, or (iii) a change in laws and regulations, or in the 23interpretation of the laws and regulations, materially impacts a reinsurance transaction. The insolvency of one or more of our 24reinsurers, the inability or unwillingness of such reinsurers to make timely payments under the terms of our contracts or payments in 25an amount equal to our reinsurance recoverable, or the risk that the reinsurance transaction does not operate as intended, including 26due to a change in laws and regulations or on account of court or arbitration panel interpretations, could have a material adverse 27effect on our results of operations and liquidity. 28Moreover, the use of reinsurance placed in the capital markets may not provide the same levels of protection as traditional 29reinsurance transactions. Any disruption, volatility and uncertainty in these markets, such as following a major catastrophic event, may 30limit our ability to access such markets on terms favorable to us or at all. Also, to the extent that we intend to use structures based on 31an industry loss index or other non-indemnity trigger rather than on actual losses incurred by us, we could be subject to residual risk.32Our Life and Retirement companies also utilize intercompany reinsurance arrangements to provide capital benefits to their affiliated 33cedants. They have also pursued, and may continue to pursue, reinsurance transactions with external parties and permitted practices 34to manage the capital impact of statutory reserve requirements under applicable reserving rules, including principle-based reserving 35(PBR). The application of actuarial guidelines and PBR involves numerous interpretations. If state insurance departments do not 36agree with our interpretations or if regulations change with respect to our ability to manage the capital impact of certain statutory 37reserve requirements, the statutory reserve requirements of our Life and Retirement companies could increase, or the ability of our 38Life and Retirement companies to take reserve credit for reinsurance transactions could be reduced or eliminated. Additionally, if the 39ratings of our Life and Retirement companies decline, we could incur higher costs to obtain reinsurance, each of which could 40adversely affect sales of our products and our financial condition or results of operations. 41The availability of private sector reinsurance for terrorism is limited and we currently have limited reinsurance coverage for terrorist 42attacks. While we benefit from the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA), which provides U.S. government 43risk assistance to the insurance industry to manage the exposure to terrorism incidents, TRIPRA has specific program limits and does 44not cover losses in certain lines of business such as personal property and personal casualty. We also rely on the government 45sponsored and government arranged terrorism reinsurance programs, including pools, in force in applicable non-U.S. jurisdictions. 46The realization of these risks may materially and adversely affect our business, results of operations and financial condition. 47For additional information on our reinsurance recoverable, see Part II, Item 7. MD&A – Enterprise Risk Management – Insurance 48Risks – Reinsurance Activities – Reinsurance Recoverable.49Our consolidated results of operations, liquidity, financial condition and ratings are subject to the effects of natural and 50man-made catastrophic events as well as mass torts.51Events such as hurricanes, windstorms, hailstorms, flooding, earthquakes, landslides, wildfires, solar storms, earth sinking, tsunamis, 52war or other military action, acts of terrorism, explosions and fires, cyberattacks, product defects, pandemics and other highly 53contagious diseases, mass torts, civil unrest and other catastrophes have adversely affected our business in the past and could do so 54in the future. 55ITEM 1A | Risk Factors5620 AIG | 2023 Form 10-K57The secret animal #3 is a "dolphin".