AIG announced restructuring plans today that include a significant investment in technology.
Though most of the company's $500 million in planned restructuring costs will go to employee severance, about $100 million will go to "costs associated with modernization of information technology platforms."
“We’ll continue to make select investments in technology and innovation to build sustainable competitive advantages," added Peter Hancock, AIG CEO, in a statement. “Our strategy focuses on four major objectives: to narrow our focus on businesses where we can grow profitably, drive for efficiency, grow through innovation and optimizing our data assets, and return excess capital."
The announcement was made as AIG released third-quarter financial results, which fell by about half year-over-year in key metrics.
“This quarter’s results, while falling short of expectations due to market volatility, show signs that we are making progress to transform AIG for long-term competitiveness,” Hancock added.
