AIG Earnings and Investment Portfolio Report
AIG 200, a global, multi-year initiative to achieve transformational change and $1B of GOE
savings; FY'20 exit run-rate savings of $400M, exceeding original GOE target of $300M
by -33%
The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by
simplifying processes and tools to create a contemporary data architecture
($M)
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
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
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
Estimate
2020
Targets
Actual
2021E 2022E
Total Comments
Capitalized assets, not in APTI initially
$100
-$80
$200
$120
$400
Restructuring and Other charges,
$250
-$150
$300
$450
$900
offset by Gain on Sale, in Net Income
Total investment
Amortized depreciated in GOE / APTI when IT or capital
asset placed into service1
Modest impact to APTI; primarily related to professional, IT
and other restructuring fees, offset by gain on sale on
divested entities
$350
~$230
$500
$570
$1,300
Run-rate net GOE savings, cumulative¹
$300
~$400
$650
Annual net benefit to APTI
$150
~$175
AIG
Estimated exit run-rate savings will emerge over a period
of time, beginning in 2020, as a result of actions taken in
the AIG 200 program
Estimated GOE benefit in 2020 as a result of actions taken
in the AIG 200 program
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.
$1,000
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