AIG faces risks from adverse economic conditions (e.g., interest rate fluctuations, inflation, recession), catastrophes (natural and man-made), cyberattacks, restructuring failures, investment valuations (especially Corebridge), reliance on third parties, reinsurance availability, changes in accounting standards, tax laws, legal proceedings, and regulatory scrutiny. Significant legal proceedings and investigations could lead to material losses. Liquidity and capital adequacy are also potential concerns.
Financial Upside
AIG's investment strategy aims for higher yields through illiquidity premiums and diversification. Strong performance from Commercial Lines and new business development in profitable lines and geographies are positive signs. Dividend payments and share repurchases are potential sources of shareholder value. The sale of the global personal travel insurance business and other assets could generate cash.
