AIG 2013 Annual Report Download - page 58

permits loans for general corporate purposes. An event of default under the Revolving Credit Facility could have a
material adverse effect on our results of operations and financial condition.
Failure to complete the AerCap Transaction could negatively affect our businesses and financial results. If
the AerCap Transaction is not completed, the ongoing businesses of ILFC and AIG may be adversely affected and
we will be subject to several risks, including the following:
• alternative plans to dispose of ILFC, such as through a sale or initial public offering, may be difficult to structure
and may take extended periods of time to implement, depending on, among other things, the global economic and
regulatory environments and general market conditions;
• we may not be able to realize equivalent or greater value for ILFC under an alternative asset monetization plan
which could impact the carrying values of ILFC’s assets and liabilities;
• we will have incurred certain significant costs relating to the disposition of ILFC without receiving the benefits of the
AerCap Transaction, and may incur further significant costs if an alternative monetization plan is undertaken;
• negative customer perception could adversely affect ILFC’s ability to compete for, maintain or win new and existing
business in the marketplace; and
• potential further diversion of our management’s time and attention.
Significant legal proceedings may adversely affect our results of operations or financial condition. We are
party to numerous legal proceedings, including securities class actions and regulatory and governmental
investigations. Due to the nature of these proceedings, the lack of precise damage claims and the type of claims we
are subject to, we cannot currently quantify our ultimate or maximum liability for these actions. Developments in
these unresolved matters could have a material adverse effect on our consolidated financial condition or consolidated
results of operations for an individual reporting period. Starr International Company, Inc. (SICO) has brought suits
against the United States (including the Federal Reserve Bank of New York) challenging the government’s assistance
of AIG, pursuant to which (i) AIG entered into a credit facility with the Federal Reserve Bank of New York; (ii) the
United States received an approximately 80 percent ownership interest in AIG; and (iii) AIG entered into transactions
involving Maiden Lane III LLC. The United States has alleged that AIG is obligated to indemnify the United States for
any recoveries in these lawsuits. A determination that the United States is liable for damages in such suits, together
with a determination that AIG is obligated to indemnify the United States, could have a material adverse effect on our
business, consolidated financial condition and results of operations. For a discussion of the SICO litigation and other
unresolved matters, see Note 15 to the Consolidated Financial Statements.
If we are unable to maintain the availability of our electronic data systems and safeguard the security of our
data, our ability to conduct business may be compromised, which could adversely affect our consolidated
financial condition or results of operations. We use computer systems to store, retrieve, evaluate and utilize
customer, employee, and company data and information. Some of these systems in turn, rely upon third-party
systems. Our business is highly dependent on our ability to access these systems to perform necessary business
functions, including providing insurance quotes, processing premium payments, making changes to existing policies,
filing and paying claims, administering variable annuity products and mutual funds, providing customer support and
managing our investment portfolios. Systems failures or outages could compromise our ability to perform these
functions in a timely manner, which could harm our ability to conduct business and hurt our relationships with our
business partners and customers. In the event of a natural disaster, a computer virus, a terrorist attack or other
disruption inside or outside the U.S., our systems may be inaccessible to our employees, customers or business
partners for an extended period of time, and our employees may be unable to perform their duties for an extended
period of time if our data or systems are disabled or destroyed. Our systems have in the past been, and may in the
future be, subject to unauthorized access, such as physical or electronic break-ins or unauthorized tampering. Like
other global companies, we have, from time to time, experienced threats to our data and systems, including malware
and computer virus attacks, unauthorized access, systems failures and disruptions. AIG maintains cyber risk
insurance, but this insurance may not cover all costs associated with the consequences of personal, confidential or
proprietary information being compromised. In some cases, such unauthorized access may not be immediately
detected. This may impede or interrupt our business operations and could adversely affect our consolidated financial
condition or results of operations.
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AIG 2013 Form 10-K40
ITEM 1A / RISK FACTORS
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