AIG 200 Strategic Update
AIG 200: Continued execution of global, multi-year initiative to achieve transformational
change and $1B of GOE savings; Achieved run rate savings of -$500M to date
($M)
1
The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by
simplifying processes and tools to create a contemporary data architecture
General
Insurance
2
Transform Japan business into a next-generation digital insurance company with the ability to offer
"anywhere, anytime, any device" experience
3
Shared
4
Services
5
Information
Technology
6
7
Finance
8
Procurement
9
Real Estate
10
Improve decision-making in Private Client Group through modernizing legacy technology and moving to
digitized workloads
Create AIG Global Operations, a multifunctional, fully integrated operating model with digitally enabled
end-to-end process and increased scope and scale
Transform IT operating model
Build a modern, scalable and secure technology foundation to improve operational stability and enable
faster business technology deployment
Transform Finance operating model
Modernize infrastructure through technology solutions and simplify finance and actuarial processes,
while materially improving analytics capabilities
Create a highly efficient global procurement and sourcing organization to leverage our purchasing
power, maximize value, minimize risk, and support sustained profitable growth
Optimize portfolio to ensure it is cost effective, resilient and reflective of global footprint
AIG 200 Costs to Achieve and GOE Benefits
Investment / Costs to Achieve
2020
Actual
1Q21
Actual
Targets
2021E 2022E Total
Comments
Capitalized assets, not in APTI initially
-$80
-$10
$200
$120
$400
Amortized depreciated in GOE / APTI when IT or capital
asset placed into service1
Restructuring and Other charges,
-$150
~$50
$300
$450
$900
offset by Gain on Sale, in Net Income
Total investment
Modest impact to APTI; primarily related to professional, IT
and other restructuring fees, offset by gain on sale on
divested entities
~$230
-$60
$500
$570
$1,300
Run-rate net GOE savings, cumulative1
~$400
~$500
$650
$1,000
Estimated exit run-rate savings will emerge over a period of
time, which began in 2020, as a result of actions taken in
the AIG 200 program
Annual net benefit to APTI
~$175M
-$75
Estimated annual APTI benefit as a result of actions taken
in the AIG 200 program
AIG
1) Targets assume estimated amortization / depreciation related to the capitalized assets of $10M-$15M and -$25M-$30M for 2021 and 2022, respectively. Targets assume that the
unamortized balance will be expensed at $50M per year from 2023-2027 and the remainder will trail off in the periods thereafter.
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