Brexit – AIG Splits European Business Between Two New Entities
In the wake of Brexit, AIG in April 2018 announced it has established and received authorization for new insurance companies in the U.K. (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 existing carrier, AIG Europe Limited, will transfer all of its existing insurance business to the new entities well ahead of the U.K. leaving the European Union, to offer “clients certainty of uninterrupted U.K. and European insurance coverage”. AIG Europe Limited will then merge into the new European company.
The new structure is expected to take effect, and the new companies to begin writing business from, 1 December 2018.
AIG Europe Limited and its successor companies underwrite P/C risks mainly. They also offer group personal accident and travel insurance as well as expatriate covers (iPMI); the reorganization will not impact AIG’s employee benefits operations in any way as the new entities will offer the exact same product range as AIG Europe Limited does.