AIG to sell Life business to FWD

American International Group, Inc. (AIG) has announced that it has agreed to sell its Japan life insurance business AIG Fuji Life Insurance Company, Ltd. (AFLI) to FWD Group, the insurance arm of Pacific Century Group. The transaction is subject to regulatory approvals. Terms of the deal were not disclosed.

This transaction does not affect AIG’s extensive non-life insurance business in Japan, the largest of any foreign-based insurer in the country, said a media statement by the company.

AIG will continue to focus on Japan’s property and casualty (P&C) market through its local subsidiaries Fuji Fire & Marine, Ltd., AIU Insurance Company, Ltd., and American Home Assurance Company, Ltd. These companies provide commercial insurance and services, as well as personal insurance coverage lines, including accident & health, auto, homeowners, and travel insurance. Japan, where AIG has operated since 1946, is the third largest commercial market and the largest personal insurance market globally for AIG, based on net premiums written by country.

“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 chief executive officer, AIG.

Following completion of the deal, FWD Group will maintain AFLI’s existing life insurance distribution agreements with AIG Japan. In-force policies will not be affected by the expected transfer of ownership.