AmazonScience/document-haystack

1For information regarding the effects of regulations related to climate change on our business, see Reserves and Exposures – 2“Climate change may adversely affect our business and financial condition” above.3For information regarding the regulatory response to the COVID-19 pandemic, see Business and Operations – “An epidemic, 4pandemic or other health crisis could materially and adversely affect our business results of operations, financial condition and 5liquidity. COVID-19 (including variants) has adversely affected and may continue to adversely affect our global business, results of 6operations, financial condition and liquidity.” above.7New laws and regulations or new interpretations of current laws and regulations, both domestically and internationally, may 8affect our businesses, results of operations, financial condition and ability to compete effectively. 9Legislators, regulators and self-regulatory organizations have in the past, and may in the future, periodically consider various 10proposals that may affect or restrict, among other things, our business practices and activities, product designs and distribution 11relationships, how we market, sell or service certain products we offer, the investment assets we hold and our investment 12management practices, our capital, reserving and accounting requirements, or the profitability of certain of our businesses.13Further, new laws and regulations may affect or significantly limit our ability to conduct certain businesses at all, including proposals 14relating to restrictions on the type of activities in which financial institutions are permitted to engage into. These proposals or changes 15in legislation or regulation could also impose additional taxes on a limited subset of financial institutions and insurance companies 16(either based on size, activities, geography or other criteria), limit our ability to engage in capital or liability management, require us to 17raise additional capital, and impose burdensome requirements and additional costs. It is uncertain whether and how these and other 18such proposals or changes in legislation or regulation would apply to us, those who sell or service our products, or our competitors or 19how they could impact our ability to compete effectively, as well as our business, consolidated results of operations, liquidity and 20financial condition.21An “ownership change” could limit our ability to utilize tax loss and credit carryforwards to offset future taxable income. 22As of December 31, 2023, on a U.S. GAAP basis, AIG Parent had U.S. federal net operating loss carryforwards of approximately 23$22.0 billion. Our ability to use these tax attributes to offset future taxable income may be significantly limited if we experience an 24“ownership change” as defined in Section 382 of the Internal Revenue Code. In general, an ownership change will occur when the 25percentage of AIG Parent's ownership (measured by value) by one or more “5-percent shareholders” (as defined in the Internal 26Revenue Code) has increased by more than 50 percentage points over the lowest percentage owned by such shareholders at any 27time during the prior three years (calculated on a rolling basis). An entity that experiences an ownership change generally will be 28subject to an annual limitation on its utilization of pre-ownership change tax loss and credit carryforwards equal to the equity value of 29the corporation immediately before the ownership change, multiplied by the long- term, tax-exempt rate posted monthly by the IRS 30(AFR) (subject to certain adjustments). The annual limitation would be increased each year to the extent that there is an unused 31limitation in a prior year. The limitation on our ability to utilize tax loss and credit carryforwards arising from an ownership change 32under Section 382 of the Internal Revenue Code would be dependent on the value of our equity and the AFR at the time of any 33ownership change. If we were to experience an “ownership change,” it is possible that a significant portion of our tax loss and credit 34carryforwards could expire before we would be able to use them to offset future taxable income.35New and proposed changes to tax laws could increase our corporate taxes or make some of our products less attractive to 36consumers. 37The Inflation Reduction Act of 2022, includes a 15 percent corporate alternative minimum tax (CAMT) on adjusted financial statement 38income for corporations with average profits over $1 billion over a three-year period. Although the U.S. Treasury and the Internal 39Revenue Service issued interim CAMT guidance during 2023, many details and specifics of application of the CAMT remain subject to 40future guidance. We are subject to CAMT for 2023. Our estimated CAMT liability will continue to be refined based on future guidance.  41New tax laws outside the U.S., in particular those enacted in response to proposals by the Organisation for Economic Cooperation 42and Development, could make substantive changes to the global international tax regime. Such changes could increase our global tax 43costs. AIG continues to monitor and assess the impact of such proposals.44Finally, it is possible that tax laws will be further changed either in a technical corrections bill or entirely new legislation. It remains 45difficult to predict whether or when there will be any tax law changes or further guidance by the authorities in the U.S. or elsewhere in 46the world. New or proposed changes to tax laws may have a material adverse effect on our business, consolidated results of 47operations, liquidity and financial condition, as the impact of proposals on our business can vary substantially depending upon the 48specific changes or further guidance made and how the changes or guidance are implemented by the authorities.49For additional information, see Note 23 to the Consolidated Financial Statements.50ITEM 1A | Risk Factors51AIG | 2023 Form 10-K 35