American International Group, Inc. (NYSE: AIG) announced that its European subsidiary, AIG Europe Limited (‘AEL’) has received approval from the High Court of England & Wales to transfer its business into two new entities: American International Group UK Limited (‘AIG UK’) and AIG Europe SA (‘AESA’) in preparation for the UK’s exit from the European Union. This is the final UK approval needed to complete the restructuring of AIG’s European operations and ensure AIG’s readiness for Brexit.
The two-entity structure enables AIG to continue to service all of its policyholders and business partners across the UK and Europe, and to guarantee contract certainty to all AEL policyholders, regardless of the future relationship between the UK and the EU. Both companies will start writing business and policyholders will transfer from AEL to the relevant new entity on 1 December 2018.
AIG currently writes business in Europe from AEL, a single insurance company, based in the UK with branches across Europe. As part of the restructure, AIG will merge AEL into AESA.
AIG UK will be based in London, UK, and will continue the business of AEL’s existing UK operations. The UK is AIG’s largest single operation in Europe. AESA will be headquartered in Luxembourg City, Luxembourg, with 21 branches across the EEA and Switzerland.
Commenting on the developments, Anthony Baldwin, CEO of AEL and AIG UK, said: “Today is an important day most of all for our clients, as we can now guarantee them access to the full range of our capabilities after Brexit. We have cleared the final major legal hurdle in our Brexit plans which will enable us to offer our clients, partners and colleagues certainty that AIG is ready to overcome the challenges posed to the insurance industry by Brexit, regardless of the UK’s future relationship with the European Union. All our clients can be assured of past, present and future contract certainty under the new structure. As we launch our two new legal entities to ensure the smooth operation of our business across Europe after Brexit, it’s an exciting time for AIG.”