AIG Builds Brexit Resiliency with 2 New Entities

In a move to restructure its European dealings prior to Brexit, American International Group, Inc. (AIG), will transfer business to two newly formed insurance companies in the United Kingdom and Luxembourg (respectively AIG UK Limited and AIG Europe S.A.). The reshuffle is intended to provide the organization's clients with uninterrupted UK and European insurance coverage.

Since beginning its preparations in 2015, AIG Europe Limited has been an industry leader in becoming Brexit resilient. The restructuring 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.

As part of AIG Europe's restricting milestones, AIG Europe S.A. will have branches across the European Economic Area and Switzerland. In addition, the High Court of England and Wales have approved the commencement of notifications to policyholders and other interested parties in accordance with UK law on the transfer of insurance portfolios.

Anthony Baldwin, chief executive of AIG Europe Limited, said, "We set a number of guiding principles from the very start as to how AIG would address Brexit. First amongst these was minimizing disruption to clients. 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. 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 restructuring is expected to take effect and the new companies will begin writing business on December 1, 2018.