American International Group has entered into several agreements with property and casualty with re/insurer Fairfax Financial Holdings, to sell to it its local commercial and consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela, and Turkey.
Furthermore, 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.
The total cash consideration for this transaction is approximately $240 million, subject to regulatory approvals.
As part of this transaction, Fairfax will become the main strategic multinational network partner that will serve AIG’s global clients in these countries.
“This partnership marks a significant step forward in achieving the strategic priorities of AIG, as well as Fairfax,” said Peter Hancock, president and CEO of 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.”
Prem Watsa, chairman and CEO of Fairfax, added: “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.
“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.”
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AIG, LatAm, Europe, M&A, Insurance, Reinsurance, Fairfax Financial Holdings