AmazonScience/document-haystack

1greater detail in Note 17 to the Consolidated Financial Statements. Additionally, difficulties or delays in separating a divested business 2from our existing infrastructure, systems and operations could reduce the anticipated economic, strategic or other benefits of such 3transaction. While we do not currently believe that claims under these indemnities will be material, it is possible that significant 4indemnity claims could be made against us. If such a claim or claims were successful, it could have a material adverse effect on our 5results of operations, cash flows and liquidity. 6For additional information regarding the risks associated with AIG’s separation of its Life and Retirement business, see Business and 7Operations – “No assurances can be given that the separation of our Life and Retirement business will be completed or as to the 8specific terms or timing thereof. In addition, we may not achieve the expected benefits of the separation and will have continuing 9equity market exposure to Corebridge until we fully divest our stake” above.10Significant legal or regulatory proceedings may adversely affect our business, results of operations or financial condition. 11In the normal course of business, we face significant risk from regulatory and governmental investigations and civil actions, litigation 12and other forms of dispute resolution in various domestic and foreign jurisdictions. In our insurance and reinsurance operations, we 13frequently engage in litigation and arbitration concerning the scope of coverage under insurance and reinsurance contracts, and face 14litigation and arbitration in which our subsidiaries defend or indemnify their insureds under insurance and reinsurance contracts.15Additionally, from time to time, various regulatory and governmental agencies review the transactions and practices of AIG and our 16subsidiaries in connection with company-specific matters, or industry-wide and other inquiries into, among other matters, the business 17practices of current and former operating insurance subsidiaries. Such reviews, investigations, inquiries or examinations have and 18could lead to extended delays to, or prohibitions of, such transactions or practices, or develop into administrative, civil or criminal 19proceedings or enforcement actions, in which remedies could include fines, penalties, restitution or alterations to our business 20practices, and could result in additional expenses, limitations on certain business activities and reputational damage.21AIG, our subsidiaries and their respective officers and directors are also subject to, or may become subject to, a variety of additional 22types of legal disputes brought by holders of AIG securities, customers, employees and others, alleging, among other things, breach 23of contractual or fiduciary duties, bad faith, indemnification and violations of federal and state statutes and regulations. Certain of 24these matters may also involve potentially significant risk of loss due to the possibility of significant jury awards and settlements, 25punitive damages or other penalties. Many of these matters are also highly complex and seek recovery on behalf of a class or 26similarly large number of plaintiffs. It is therefore inherently difficult to predict the size or scope of potential future losses arising from 27them, and developments in these matters could have a material adverse effect on our consolidated financial condition or consolidated 28results of operations.29For information regarding certain legal proceedings, see Notes 17 and 23 to the Consolidated Financial Statements.30Increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders 31regarding environmental, social and governance matters, including governmental responses to such matters, may adversely 32affect our reputation or otherwise adversely impact our business and results of operations. 33There is increasing scrutiny and evolving expectations from investors, customers, regulators, policymakers and other stakeholders on 34companies’ governance, risk oversight, disclosures, plans, policies and practices regarding environmental, social and governance 35matters, including those related to environmental stewardship, climate change, diversity, equity and inclusion, racial justice and 36workplace conduct. These standards and expectations may also, as a whole, reflect diverging or conflicting values or policy 37objectives. 38Governmental actions to mitigate climate and other risks related to environmental, social and governance matters could have an 39adverse effect on our business and results of operations. Internationally and at the U.S. federal and state levels, regulators have 40imposed and likely will continue to impose requirements and guidance related to environmental, social and governance matters, which 41may conflict with one another, impose additional costs on us and expose us to new or additional risks, including financial, regulatory, 42litigation, reputational and operational risks. See Business – Regulation – Climate Change.43Certain organizations that provide information to investors have developed ratings for evaluating companies on their approach to 44different environmental, social and governance matters, and unfavorable ratings of our company or our industries may lead to 45negative investor sentiment and the diversion of investment to other companies or industries. We may not be able to meet 46environmental, social, governance or sustainability targets, goals, plans, standards or expectations (including any previously 47announced climate target, goal or plan), whether established or set by us or third parties, due to a variety of factors, including 48regulatory or other developments, changes to the methodologies, assumptions and estimates that underlie our climate- and other 49sustainability-related targets, goals and strategy, or the actions of or information provided by third parties outside of our control, who 50may apply standards, methodologies, practices and policies that differ from ours. If we are unable to meet such targets, goals, plans, 51standards or expectations, it could result in adverse publicity, reputational harm, or loss of customer and/ or investor confidence, 52which could adversely affect our business and results of operations.53ITEM 1A | Risk Factors5432 AIG | 2023 Form 10-K