AIG splits Europe business between UK, Luxembourg ahead of Brexit

American International Group (AIG) is creating two new insurance companies, one in the UK and one in Luxembourg and is splitting the European business among them ahead of the UK leaving the EU.

The restructuring of AIG’s European business involves the transfer of AIG Europe Limited’s existing insurance business to the new UK and European companies and the merger of its existing carrier, AIG Europe Limited into the new European company.

AIG has already received authorisation for new insurance companies in the UK (American International Group UK Limited) and Luxembourg (AIG Europe S.A.). AIG Europe S.A. will have branches across the European Economic Area and Switzerland. The new companies are expected to begin writing business from, Dec. 1, 2018.

AIG has received approval from the High Court of England and Wales for the commencement of notifications to policyholders and other interested parties in accordance with UK law on the transfer of insurance portfolios.

“The great advantage of the restructuring route we have chosen is that it will give clients certainty that whatever the other unknowns of Brexit for their businesses, their European insurance coverage has been Brexit-proofed,” said Anthony Baldwin, CEO of AIG Europe Limited. “We have already established a platform in Europe for writing future new business and renewals, and by transferring our existing business, AIG will remove uncertainty for clients, including not being reliant on the development of a grandfathering regime for existing contracts.”

The restructure leverages AIG’s European footprint to ensure that it will have an appropriate structure from which to serve clients and partners after Brexit, regardless of the future relationship between the UK and the European Union, the company said.

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