AIG sells Japan life business to FWD, a new entrant to the market
American International Group (AIG) has agreed to sell its Japan life insurance business, AIG Fuji Life Insurance (AFLI), to FWD Group, the insurance segment of Pacific Century Group.
“Like other actions we’ve taken this year, the sale of AIG Fuji Life makes us a leaner insurer that’s better focused on the geographies and segments where we have the critical mass and expertise to provide tremendous value to our clients,” said Peter Hancock, president and CEO of AIG.
The deal marks FWD’s entry into Japan’s life insurance market, further extending its regional footprint in Asia. Japan is the second largest life insurance market in the world.
FWD was establishment in 2013 and is a pan-Asian life insurer operating across Thailand, Indonesia, the Philippines, Singapore and Vietnam with a strong base in Hong Kong and Macau.
Terms of the deal were not disclosed, and the transaction is subject to regulatory approvals.
AIG’s non-life insurance business in Japan is unaffected by the transaction, and AIG will continue to focus on Japan’s property/casualty market through its local subsidiaries Fuji Fire & Marine, AIU Insurance, and American Home Assurance.
“In this core market for AIG, we are committed to growing both our commercial and consumer personal insurance lines,” Hancock said.
“At the same time, our AFLI clients and colleagues will benefit from FWD’s commitment to growing the life business in Japan. Beyond the deal’s close, we look forward to partnering with FWD on life distribution in support of its goals, and in exploring other future opportunities.”
Following the deal’s completion, FWD will maintain AFLI’s existing life insurance distribution agreements with AIG Japan, and the expected transfer of ownership will not affect in-force policies.
Huynh Thanh Phong, group CEO of FWD, added: “AIG Fuji Life is a strong foundation for FWD’s entry to Japan and our partnership with AIG will give FWD access to an extensive distribution network with an established customer base.
“We aim to develop and grow AFLI through investment in the long-term and our customer-led, technology-driven approach.”
