AIG to sell certain LatAm operations

American International Group, Inc. has 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 USD240 million. Each transaction is subject to relevant regulatory approvals.

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.

“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.”