“As part of AIG Next, we are creating a leaner parent company with a target cost structure of 1% to 1.5% of net premiums earned.”

In context

“he following key principles: driving global consistency and local relevancy across our end-to-end processes to improve operational efficiency and effectiveness, reducing organizational complexity to create a better and differentiated experience for our clients and colleagues, creating an agile and scalable organization to support business growth, optimizing our ecosystem to modernize our data analytics, digital and technology capabilities, clarifying roles' responsibilities while eliminating duplication and increasing our speed of execution. As we've stated in the past, we expect the simplification and efficiencies created through this program to generate $500 million of sustained annual run rate savings and to incur approximately $500 million of onetime spend to achieve these savings. As part of AIG Next, we are creating a leaner parent company with a target cost structure of 1% to 1.5% of net premiums earned. Some of the current costs and other operations will be eliminated contributing to the $500 million savings, and others will be moved into the business where the service is utilized. In 2023, we began this work, as we've moved approximately $140 million of expenses from other operations into General Insurance for services that are more closely aligned to our business operations. Even with this shift, the full year combined ratio of 90.6% improved 130 basis points year-over-year, and the full year GOE ratio only increased 40 basis points due to offsetting savings within General Insurance. Throughout the year, we've built efficiencies into our business, which have allowed general insurers to absorb these costs. We've already begun to make meaningful progress against our $500 million sav”