AIG restructures in Europe ahead of Brexit
American International Group has been given the green light to split its European subsidiary into two, as it prepares for the UK's exit from the European Union.
The High Court of England and Wales has approved the transfer of British-based AIG Europe Limited's business into two new entities, one to serve UK customers and the other for business in the rest of Europe.
AIG is led by Bermudian-born Brian Duperreault.
The two new entities created ahead of Brexit — which is scheduled to happen next March — are American International Group UK Ltd, which will be based in London, and AIG Europe SA, which will be headquartered in Luxembourg and have 21 branches across the European Economic Area and Switzerland.
The company said the London court's approval was the final piece needed “to complete the restructuring of AIG's European operations and ensure AIG's readiness for Brexit”.
Through the two companies, AIG will 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 new entities on December 1.
Anthony Baldwin, chief executive officer 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.”