General Insurance Financial Overview slide image

General Insurance Financial Overview

AIG 200: Continued execution of global, multi-year initiative to achieve transformational change ■ Estimated run-rate net general operating expense exit savings of $1B by end of 2022 ■ Achieved run-rate savings of $810M since program began in 2020 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 ~$50M per year from 2023-2027 and the remainder will trail off in the periods thereafter. AIG Copyright © 2022 by American International Group, Inc. All rights reserved. No part of this document may be reproduced, republished or reposted without the permission of AIG. 1 General 2 Insurance 3 Shared 4 Services 5 Information Technology 6 7 Finance 8 The Standard Commercial Underwriting Platform will modernize global underwriting capabilities by simplifying processes and tools to create a contemporary data architecture Transform Japan business into a next-generation digital insurance company with the ability to offer "anywhere, anytime, any device" experience Improve decision-making in Private Client Group through modernizing legacy technology and moving to digitized workloads Create AIG Global Operations, a multifunctional, fully integrated operating model with digitally enabled end-to-end process and increased scope and scale Transform IT operating model Build a modern, scalable and secure technology foundation to improve operational stability and enable faster business technology deployment Transform Finance operating model Modernize infrastructure through technology solutions and simplify finance and actuarial processes, while materially improving analytics capabilities Procurement 9 Create a highly efficient global procurement and sourcing organization to leverage our purchasing power, maximize value, minimize risk, and support sustained profitable growth Real Estate 10 Optimize portfolio to ensure it is cost effective, resilient and reflective of global footprint AIG 200 Costs to Achieve and General Operating Expense (GOE) Benefits ($M) 2020- 4Q21 Actual 2021 Actual 2022E Total Comments Investment / Costs to Achieve Capitalized assets, not in APTI initially ~$225 ~$145 $175 $400 Restructuring and Other charges, offset by Gain on Sale, in Net Income ~$420 ~$270 $480 $900 Total investment ~$645 ~$415 $655 $1,300 Run-rate net GOE savings, cumulative¹ ~$810 ~$420 $190 Net benefit to APTI ~$540 ~$405 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 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 Estimated APTI benefit as a result of actions taken in the AIG 200 program 6
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