AIG Committed to Focusing on Multinational Capabilities and
Investments in Countries with Strong Growth Prospects, Opportunity for
NEW YORK--(BUSINESS WIRE)--Oct. 18, 2016--
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
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
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
Additional information about AIG can be found at www.aig.com
| 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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Source: American International Group, Inc.
American International Group, Inc.