AIG has entered into a definitive agreement to sell its global individual personal travel insurance and assistance business to Zurich Insurance Group for $600 million in cash plus additional earn-out consideration. This strategic move will allow AIG to focus on its core insurance operations.

AIG closed on a secondary offering of 30 million shares of Corebridge common stock, generating gross proceeds of $876 million. This further reduces AIG's stake in Corebridge and allows AIG to redeploy capital.

The Board of Directors authorized the repurchase of $10.0 billion of AIG Common Stock, signaling confidence in AIG's financial position and future prospects. This program reflects AIG's commitment to returning capital to shareholders.

Restructuring activities resulted in a severance charge of $285 million and asset impairment of $53 million for the three months ended June 30, 2024. This indicates management is actively streamlining operations, but it also reflects associated costs.

Management continues to emphasize underwriting discipline and portfolio optimization, as evidenced by actions taken in both Commercial and Personal Insurance. This includes managing exposure, terms, and rate changes to achieve risk/return hurdles.

Management is actively implementing restructuring initiatives and cost-saving opportunities, aiming to improve operational efficiency. This is reflected in the discussions on general operating and other expenses.

AIG acknowledges risks from its continuing equity market exposure to Corebridge, noting that a decline in Corebridge's stock value may negatively impact AIG's investment income and financial condition. The sale of Corebridge stock involves divestment-related risks.

AIG is exposed to significant losses from catastrophic events, both natural and man-made, and the effects of climate change. These events can cause substantial volatility in financial results.

AIG acknowledges the impact of adverse developments affecting economic conditions in its markets, including financial market conditions, macroeconomic trends, interest rates, foreign currency exchange rates, inflation, and geopolitical events or conflicts.

General Insurance operates in a highly competitive industry against global, national and local insurers and reinsurers and underwriting syndicates. Insurance companies compete through a combination of risk acceptance criteria, product pricing, service levels and terms and conditions.

General Insurance seeks to differentiate itself in the markets where it participates by providing leading expertise and insight to clients, distribution partners and other stakeholders, delivering underwriting excellence and value-driven insurance solutions and providing high quality, tailored end-to-end support to stakeholders.

In competing in General Insurance, AIG leverages its world-class global franchise, multinational capabilities, balance sheet strength and financial flexibility.

AIG is actively implementing restructuring initiatives designed to reduce operating expenses, improve efficiency and simplify our organization. This is reflected in the discussions on general operating and other expenses.

The expense ratio is being managed, as evidenced by discussions on acquisition and general operating expenses. Management aims to reduce operating expenses and improve efficiency.

Restructuring and other costs increased in the second quarter of 2024, primarily as a result of employee-related costs, including severance, and real estate impairment charges, indicating a short-term cost increase for long-term efficiency gains.

AIG plans to effectively implement technological advancements, including the use of artificial intelligence (AI), and respond to competitors' AI and other technology initiatives.

AIG is working on data security and cyber risk, and the inability to safeguard the confidentiality and integrity of customer, employee or company data due to cyberattacks, data security breaches, or infrastructure vulnerabilities.

AIG allocates capital to support our insurance operations and business strategies, AIG's funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant.

Depending on market conditions, regulatory and rating agency considerations and other factors, we may take various liability and capital management actions. Liability management actions may include, but are not limited to, repurchasing or redeeming outstanding debt, issuing new debt or engaging in debt exchange offers.

Capital management actions may include, but are not limited to, issuing preferred stock, paying dividends to our shareholders on AIG Common Stock, par value $2.50 per share (AIG Common Stock) and repurchases of AIG Common Stock.

AIG's ability to address evolving stakeholder expectations and regulatory requirements with respect to environmental, social and governance matters is a key risk factor.

AIG is impacted by adverse developments affecting economic conditions in the markets in which AIG and its businesses operate in the U.S. and globally, including adverse developments related to financial market conditions, macroeconomic trends, fluctuations in interest rates and foreign currency exchange rates, inflationary pressures, an economic slowdown or recession, and geopolitical events or conflicts.

AIG is impacted by the effects of changes in laws and regulations, including those relating to the regulation of insurance, in the U.S. and other countries in which AIG and its businesses operate.