AIG Agrees to Sell Certain Latin America, Central & Eastern Europe Operations to Fairfax Financial; Enters into Strategic Par...
18 October 2016 - 11:10PM
Business Wire
AIG Committed to Focusing on Multinational Capabilities and
Investments in Countries with Strong Growth Prospects, Opportunity
for Scale
American International Group, Inc. (NYSE:AIG) today announced
that it has entered into several agreements with Fairfax Financial
Holdings Limited, a leading global property and casualty insurer
and reinsurer, as part of a strategic partnership that will further
focus and streamline AIG’s global insurance operations.
As part of these agreements, AIG will sell to Fairfax its local
commercial and consumer insurance operations in Argentina, Chile,
Colombia, Uruguay, Venezuela, and Turkey. Fairfax will also acquire
renewal rights for the portfolio of local business written by AIG’s
Central and Eastern European (CEE) operations in Bulgaria, Czech
Republic, Hungary, Poland, Romania, and Slovakia, and assume AIG’s
CEE operating assets and employees. Total cash consideration is
approximately $240 million. Each transaction is subject to relevant
regulatory approvals.
Fairfax will become the main strategic multinational network
partner that will serve AIG’s global clients in these countries,
backed by AIG’s expertise, claims handling, and reinsurance
capabilities.
The divestiture furthers AIG’s strategic goal of focusing its
geographic footprint and investment in major economies that offer
the greatest potential for profitable growth and the opportunity
for AIG’s commercial or consumer insurance divisions to achieve and
maintain scale. At the same time, AIG is committed to maintaining
and enhancing multinational capabilities for individuals and
companies that operate globally.
“This partnership marks a significant step forward in achieving
the strategic priorities of AIG, as well as Fairfax,” said Peter
Hancock, President and Chief Executive Officer, AIG. “We look
forward to expanding our multinational network partner relationship
with Fairfax to provide seamless world-class capabilities and
outstanding service to our global clients in these key countries.
We also remain committed to those markets that hold the greatest
potential for AIG to sell its insurance products competitively and
where we can profitably serve our clients.”
“We are very excited to partner with AIG and to have the LATAM
group of companies and operations in CEE and Turkey join the
Fairfax family,” said Prem Watsa, Chairman and Chief Executive
Officer, Fairfax. “The LATAM companies are well established in
their respective markets with experienced management teams and a
disciplined approach to underwriting, and they will significantly
expand Fairfax’s footprint in Latin America. The acquisition of the
CEE operations follows on our recent expansion in Eastern Europe
through our previously announced QBE transaction and will
accelerate our plans for long-term growth in the region.”
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements, including the closing of
the transaction described herein, are not historical facts but
instead represent only AIG’s belief regarding future events, many
of which, by their nature, are inherently uncertain and outside
AIG’s control. Except for AIG’s ongoing obligation to disclose
material information as required by federal securities laws, AIG is
not under any obligation (and expressly disclaims any obligation)
to update or alter any forward-looking statements, whether written
or oral, that may be made from time to time, whether as a result of
new information, future events or otherwise. Factors that could
cause AIG’s actual results to differ, possibly materially, from any
forward-looking statements include the factors set forth in AIG’s
filings with the United States Securities and Exchange
Commission.
American International Group, Inc. (AIG) is a leading global
insurance organization. Founded in 1919, today AIG member companies
provide a wide range of property casualty insurance, life
insurance, retirement products, mortgage insurance and other
financial services to customers in more than 100 countries and
jurisdictions. These diverse offerings include products and
services that help businesses and individuals protect their assets,
manage risks and provide for retirement security. AIG common stock
is listed on the New York Stock Exchange and the Tokyo Stock
Exchange.
Additional information about AIG can be found at www.aig.com and
www.aig.com/strategyupdate | YouTube: www.youtube.com/aig |
Twitter: @AIGinsurance | LinkedIn:
http://www.linkedin.com/company/aig. These references with
additional information about AIG have been provided as a
convenience, and the information contained on such websites is not
incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent
third parties. Certain property-casualty coverages may be provided
by a surplus lines insurer. Surplus lines insurers do not generally
participate in state guaranty funds, and insureds are therefore not
protected by such funds.
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version on businesswire.com: http://www.businesswire.com/news/home/20161018005930/en/
American International Group, Inc.Media:Matt Gallagher,
212-458-3247matthew.gallagher2@aig.comorInvestors:Liz Werner,
212-770-7074elizabeth.werner@aig.com
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