gfp Posted October 18, 2016 Posted October 18, 2016 From insurance insider: ----------------------------- AIG has agreed to sell its Latin American and central and eastern Europe (CEE) operations to Fairfax Financial for a cash consideration of $240mn. As part of the agreement, AIG will sell its local commercial and consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey to Fairfax. Fairfax will also acquire renewal rights for the portfolio of local business written by AIG's CEE operations in Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia, and assume AIG's CEE operating assets and employees. Both transactions are subject to regulatory approval. The disposals are part of AIG's strategy to refocus its geographic footprint on regions that offer "the greatest potential for profitable growth and the opportunity for AIG's commercial or consumer insurance divisions to achieve and maintain scale", the company said in a statement. Fairfax chairman and CEO Prem Watsa commented: "The LatAm companies are well established in their respective markets with experienced management teams and a disciplined approach to underwriting, and they will significantly expand Fairfax's footprint in Latin America. "The acquisition of the CEE operations follows on our recent expansion in Eastern Europe through our previously announced QBE transaction and will accelerate our plans for long-term growth in the region." AIG has been divesting various operations as it seeks to streamline the group, following pressure from activist shareholders to break up the business at the end of last year. In August, AIG announced a deal to sell mortgage insurance business United Guaranty to Arch for $3.4bn. Other disposals include that of Advisor Group and AIG's Taiwanese SME enterprise business. The firm is also said to be exploring the sale of a $5bn legacy book and a $15bn variable annuity book. Proceeds from divestitures are expected to contribute towards the ambitious $25bn that AIG has pledged to return to shareholders over the next two years.
Txvestor Posted October 18, 2016 Posted October 18, 2016 Has the look of a very good and strategic acquisition for fairfax. We know the price paid, but does anyone have any information on the LATAM division. Book value, combined ratios, total float etc.
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