v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) from Continuing Operations Before Income Tax Expense (Benefit) by U.S. and Foreign Location
The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred:
Years Ended December 31,
(in millions)202520242023
U.S.$1,503 $1,818 $900 
Foreign2,376 2,052 1,967 
Total$3,879 $3,870 $2,867 
Schedule of Income Tax Expense (Benefit) Attributable to Pre-Tax Income (Loss) from Continuing Operations
The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations:
Years Ended December 31,
(in millions)202520242023
Income tax expense (benefit):
U.S. Federal:
Current$253 $283 $(246)
Deferred(221)416 (110)
U.S. State & Local*:
Current17 
Deferred(12)
Foreign:
Current635 374 422 
Deferred110 97 60 
Total$782 $1,170 $126 
*The income tax expense (benefit) related to U.S. state and local tax jurisdictions are reflected in the U.S. Federal income tax expense (benefit) for years 2024 and 2023 based on the originally as-filed basis prior to the adoption of the accounting standard.
Reconciliation Between Actual Income Tax (Benefit) Expense and Statutory U.S. Federal Amount Computed by Applying the Federal Income Tax Rate
Our actual income tax expense (benefit) from continuing operations differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:
Year Ended December 31,2025
(dollars in millions)
Pre-Tax
Income
(Loss)
Tax
Expense
(Benefit)
Percent of
Pre-Tax
Income
(Loss)
U.S. federal income tax at statutory rate
$3,879 $815 21.0 %
Adjustments:
State and local income tax, net of federal income tax effect14 0.4 
Foreign tax effects:
United Kingdom:
Effect of rate different than statutory
43 1.1 
Other
46 1.2 
Netherlands:
Effect of rate different than statutory
41 1.1 
Other
(1)— 
Other jurisdictions
116 3.0 
Effect of cross-border tax laws, net of related tax credits:
U.S. income taxes on non-U.S. insurance companies(a)
(59)(1.5)
Other
28 0.7 
Tax credits(20)(0.5)
Changes in valuation allowances(300)(7.7)
Nontaxable or nondeductible items20 0.5 
Changes in unrecognized tax benefits - Global
17 0.4 
Other22 0.5 
Consolidated total amounts
$3,879 $782 20.2 %
(a)This relates to certain foreign insurance companies elected to be treated as a U.S. corporation under the U.S. federal tax law provisions.
The effective tax rate disclosures for the years ended 2024 and 2023 remain on the originally as-filed basis prior to the adoption of the improvements to income tax disclosures standard.
Years Ended December 31,20242023
(dollars in millions)Pre-Tax
Income
(Loss)		Tax
Expense
(Benefit)		Percent of
Pre-Tax
Income
(Loss)		Pre-Tax
Income
(Loss)		Tax
Expense
(Benefit)		Percent of
Pre-Tax
Income
(Loss)
U.S. federal income tax at statutory rate
$3,870 $813 21.0 %$2,867 $602 21.0 %
Adjustments:
Tax exempt interest
(8)(0.2)(14)(0.5)
Uncertain tax positions(a)
17 0.4 169 5.9 
Dispositions of subsidiaries(b)
(1)— (143)(5.0)
Non-deductible transfer pricing charges
13 0.3 16 0.6 
Effect of foreign operations(c)
110 2.8 176 6.1 
Share-based compensation payments excess tax effect
(16)(0.4)(21)(0.7)
State and local income taxes
26 0.7 23 0.8 
Developments related to prior tax years under IRS review(a)
240 6.2 (467)(16.3)
Other(d)
9 0.3 150 5.2 
Valuation allowance(e)
(33)(0.9)(365)(12.7)
Consolidated total amounts
$3,870 $1,170 30.2 %$2,867 $126 4.4 %
(a)2024 includes an update related to the estimated impact of potential resolution for prior tax years under IRS Appeals review. Refer to the Tax Examinations section below for further discussion on developments related to prior tax years under IRS review. For 2023, refer to the Accounting for Uncertainty in Income Taxes section below for further discussion on tax audit resolution activity. 2024 and 2023 uncertain tax positions include changes in unrecognized tax benefits in U.S. and certain foreign jurisdictions.
(b)This primarily includes tax implications of the sales of Validus Re for year 2023.
(c)Effect of foreign operations is primarily related to income and losses in our foreign operations taxed at statutory tax rates different than 21 percent, and foreign income subject to U.S. taxation.
(d)Primarily includes tax charges associated with tax adjustments related to prior year U.S. and foreign returns.
(e)2024 and 2023 amounts reflect changes in valuation allowances in U.S. and certain foreign jurisdictions. Primarily due to 2023 reduction in valuation allowance related to AIG’s U.S. federal consolidated income tax group tax attribute carryforwards.
Schedule of Components of the Net Deferred Tax Asset
The following table presents the components of the net deferred tax assets (liabilities):
December 31,
(in millions)20252024
Deferred tax assets:
Losses and tax credit carryforwards$4,155 $4,636 
Basis differences on investments336 30 
Accruals not currently deductible, and other276 150 
Investments in foreign subsidiaries29 19 
Loss reserve discount440 443 
Loan loss and other reserves43 37 
Unearned premium reserve reduction— 46 
Fixed assets and intangible assets271 293 
Unrealized losses related to available for sale debt securities153 618 
Employee benefits163 192 
Other10 39 
Total deferred tax assets5,876 6,503 
Deferred tax liabilities:
Deferred policy acquisition costs(139)(278)
Life policy reserves(43)(45)
Unearned premium reserve reduction
(161)— 
Total deferred tax liabilities(343)(323)
Net deferred tax assets before valuation allowance5,533 6,180 
Valuation allowance(1,051)(1,650)
Net deferred tax assets$4,482 $4,530 
Schedule of Consolidated Income Tax Group Credits Carryforwards
The following table presents AIG's U.S. consolidated federal income tax group tax losses and credits carryforwards.
December 31, 2025Tax
Carryforward Period
Ending Tax Year(b)
Unlimited Carryforward Period
and Carryforward Periods(b)
(in millions)GrossEffected20282029203020312032 - After
Net operating loss carryforwards$15,610 $3,278 $1,300 $178 $— $930 $870 
Other carryforwards— — — — — — 
Total AIG U.S. consolidated federal income tax group tax losses and credits carryforwards on a U.S. GAAP basis(a)
$3,278 $1,300 $178 $— $930 $870 
(a)Financial reporting basis reflects the impact of unrecognized tax benefits for tax years in which tax attributes can be realized through carryback upon settlement.
(b)Carryforward periods are based on U.S. tax laws governing utilization of tax attributes. Expiration periods are based on the year the carryforward was generated
Schedule of Net Deferred Tax Assets (Liabilities)
The following table presents the net deferred tax assets (liabilities) at December 31, 2025 and 2024 on a U.S. GAAP basis:
December 31,
(in millions)20252024
Net U.S. deferred tax assets$4,835 $4,922 
Net deferred tax assets (liabilities) in AOCI109 421 
Valuation allowance(194)(798)
Subtotal4,750 4,545 
Net foreign, state and local deferred tax assets1,203 1,263 
Valuation allowance(857)(852)
Subtotal346 411 
Subtotal - Net U.S., foreign, state and local deferred tax assets5,096 4,956 
Net foreign, state and local deferred tax liabilities(614)(426)
Total AIG net deferred tax assets (liabilities)$4,482 $4,530 
Summary of Income Tax Examinations
Listed below are the tax years that remain subject to examination by major tax jurisdictions:
At December 31, 2025Open Tax Years
Major Tax Jurisdiction
United States
2007-2024
Australia
2021-2024
Canada
2021-2024
France
2023-2024
Germany
2016-2024
Japan
2019-2024
Korea
2020-2024
Singapore
2021-2024
United Kingdom
2023-2024
Reconciliation of the Beginning and Ending Balances of the Total Amounts of Gross Unrecognized Tax Benefits
The following table presents a reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits, excluding interest and penalties:
Years Ended December 31,
(in millions)202520242023
Gross unrecognized tax benefits, beginning of year$1,384 $1,387 $1,191 
Increases in tax positions for prior years41 3 200 
Decreases in tax positions for prior years(12)(20)(4)
Increases in tax positions for current year— 15 — 
Lapse in statute of limitations(1)(1)— 
Gross unrecognized tax benefits, end of year$1,412 $1,384 $1,387 
Schedule of Income Taxes Paid (Refunded)
The following table presents net income taxes paid (refunded):
Year Ended December 31,
(in millions)
2025
Net Income Taxes Paid (Refunded)
U.S. federal$(229)
U.S. state & local:
New York
21 
Other
26 
Foreign:
UK
79 
Canada
77 
Italy
32 
Japan
71 
Australia
38 
Mexico
31 
Korea
23 
Other161 
Total net income taxes paid (refunded)$330