NEW YORK--Jan. 13, 2009--American International Group, Inc. (AIG) announced today an agreement to
sell AIG Life Insurance Company of Canada (AIG Life of Canada) to BMO
Financial Group (BMO). AIG Life of Canada, headquartered in Toronto,
Canada, offers a wide range of insurance and wealth products, including
universal life and term life insurance plans, critical illness plans,
permanent plans and immediate annuities.
Under the terms of the transaction, BMO will acquire AIG Life of Canada
for approximately C$375 million (or approximately US $308 million) in
cash, subject to any change in net worth between September 30, 2008 and
The transaction, which is expected to close by June 1, 2009, is subject
to certain conditions, including approvals by the appropriate regulatory
"Our management team is excited about becoming an integral part of one
of Canada's premier financial institutions," said Peter McCarthy,
President and CEO of AIG Life of Canada. "As part of the BMO Financial
Group, we look forward to serving our clients and distribution partners
and building on our reputation for providing innovative insurance
solutions for Canadians."
"We look forward to welcoming the 300 employees and 400,000 customers of
AIG Life of Canada," said Bill Downe, President and CEO, BMO Financial
Group. "Acquiring AIG Life of Canada will strengthen BMO's overall
financial planning, wealth and retirement offering, giving us the
ability to expand our client relationships through a comprehensive line
up of products."
J.P. Morgan Securities acted as financial advisor to AIG on this
transaction. Blackstone Advisory Services provided financial advice to
AIG in connection with AIG's global restructuring program.
American International Group, Inc. (AIG), a world leader in insurance
and financial services, is the leading international insurance
organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide
property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services,
financial services and asset management around the world. AIG's common
stock is listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
ABOUT AIG LIFE OF CANADA
AIG Life of Canada is based in Toronto with sales offices in Montreal,
Calgary and Vancouver, and is a member of New York-based American
International Group, Inc. AIG Life of Canada manufactures and sells a
full suite of individual life insurance products including term life,
whole life, universal life, annuities and critical illness insurance.
AIG Life of Canada is organized into three operating divisions: Agency
(more than 5,000 active advisors across Canada), Direct
(direct-to-consumer marketing operations) and Group (traditional
employee benefits insurance).
ABOUT BMO FINANCIAL GROUP
BMO Financial Group is a highly diversified North American financial
services organization that provides a broad range of retail banking,
wealth management, and investment banking products and solutions to more
than seven million clients and customers across Canada. BMO offers a
range of innovative and easy-to-understand insurance solutions that
includes: life and disability insurance on mortgages, loans and lines of
credit; MasterCard Outstanding Balance insurance; DirectTerm life
insurance; Personal Accident Protection, critical illness, and travel
insurance. BMO Nesbitt Burns and its predecessor companies have been
helping investors meet their financial goals since 1912. Today, BMO
Nesbitt Burns has more than 74 branches and 1400 Investment Advisors (as
of December 31, 2008).
CONTACT: American International Group, Inc.
David Monfried, Restructuring Communications, 212-770-7205
Teri L. Watson, Investor & Rating Agency Relations, 212-770-7074
AIG Life of Canada
Peter McCarthy, 416-596-2901
BMO Financial Group
Ralph Marranca, Director, Media and Public Relations, 416-867-3996
Source: American International Group, Inc.