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Brexit Restructure Approved – AIG

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AIG in October 2018 received approval from British courts for its European subsidiary, AIG Europe Limited (AEL) to transfer its business into two new entities: American International Group UK Limited (AIG UK), based in London, UK, and AIG Europe SA (AESA) in preparation for Brexit.

AESA’s headquarters are in Luxembourg City, Luxembourg, and has 21 branches across the European Economic Area and Switzerland. It is led by Christophe Nicolas and Ivan Zanievski.

The approval completes the restructuring of AIG’s European operations. The new 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 policyholders. AIG UK and AESA will start writing business and existing policies will be transferred to one of the new entities on December 1, 2018.


“Contract certainty” is feature that AIG often promotes in its client communications. It refers to making sure an insurance contract is available in final form and is duly signed before the in-force or renewal date. Whilst this seems obvious, it is far from the norm in practice. A complex gaggle of draft contracts, tentative agreements, term sheets, clarifications by email, side letters, are common, leading to potential disputes and generally, uncertainty.

Contract certainty probably is the reason for the choice of December 1, 2018 for the transfer, instead of January 1, 2019, which might seem more logical. But it may be very difficult to have business insurance contracts renewed (typically on January 1) and transferred at the same time. So here the move is split into two discrete steps: transfer to the new entity on December 1 and renewal (with all necessary updates and adjustments) by the same new entity on January 1.

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