Investor Presentaiton
Continued execution of AIG 200, a global, multi-year initiative to
achieve transformational change and $1B of GOE savings
The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by
simplifying processes and tools to create a contemporary data architecture
General
Insurance
2
Transform Japan business into a next-generation digital insurance company with the ability to offer
"anywhere, anytime, any device" experience
3
Shared
4
Services
5
Information
Technology
6
7
Finance
8
Improve decision-making in Private Client Group through modernizing legacy technology and moving to
digitized workloads
Create AIG Global Operations, a multifunctional, fully integrated operating model with digitally enabled
end-to-end process and increased scope and scale
Transform IT operating model
Build a modern, scalable and secure technology foundation to improve operational stability and enable
faster business technology deployment
Transform Finance operating model
Modernize infrastructure through technology solutions and simplify finance and actuarial processes,
while materially improving analytics capabilities
Create a highly efficient global procurement and sourcing organization to leverage our purchasing
power, maximize value, minimize risk, and support sustained profitable growth
Procurement
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Real Estate
10
Optimize portfolio to ensure it is cost effective, resilient and reflective of global footprint
AIG 200 Costs to Achieve and GOE Benefits
1H'20
2020E
2021E
2022E
Total
Comments
($M)
Investment / Costs to Achieve
Capitalized assets, not in APTI
initially
$32
$100
$200
$100
$400
Amortized / depreciated in GOE / APTI when IT or capital
asset placed into service¹
Restructuring and Other charges,
$109
$250
$300
$350
$900
in Net Income
No impact to APTI; primarily related to professional, IT and
restructuring fees
Total investment
$141
$350
$500
$450
$1,300
Run-rate net GOE savings,
~$140
$300
$600
cumulative¹
Annual net benefit to APTI
$1502
AIG
1H20 GOE savings of -$40M, which translates to ~$140M on
an annualized basis; part of the planned $300M by year-end
~75% in Gl; ~12.5% in L&R; ~12.5% in Other Operations
1) Includes estimated amortization / depreciation related to the capitalized assets of $10M-$15M and $25M-$30M for 2021 and 2022, respectively. The
unamortized balance will be expensed at ~$50M per year from 2023-2027 and the remainder will trail off in the periods thereafter.
2) Initial estimate based on full year expense savings due to AIG 200 that result in $300M exit run-rate in 4Q20.
11
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