The restructure of AIG’s European business is under way with the company today announcing the formation of two new entities.
All new business will be transferred to the new entities which have been established in the UK and Luxembourg, ensuring no interruption to the firm’s insurance coverage. In a release announcing the move, AIG outlined that it began preparation to be “Brexit-resilient” back in 2015 and that the restructure will see the transfer of existing insurance business to the new UK and European companies, as well as the merger of the existing carrier, AIG Europe Limited, to the new European company.
“We set a number of guiding principles from the very start as to how AIG would address Brexit,” said Anthony Baldwin, chief executive of AIG Europe Limited. “First amongst these was minimising disruption to clients.”
The firm claims that it has hit a number of “key restructure milestones” including:
· Establishing and receiving authorisation for new insurance companies in the UK (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; and
· The High Court of England and Wales approval of the commencement of notifications to policyholders and other interested parties in accordance with UK law on the transfer of insurance portfolios.
“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,” continued Baldwin. “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.”
It is expected that the changes will take effect from December 01 this year, at which point the new companies will start writing business.