AIG is creating two new insurance companies, one in the UK and one in Luxembourg and is splitting the European business between them ahead of the UK leaving the EU.
The carrier has said that this provides clients certainty of uninterrupted UK and European insurance coverage as part of AIG’s planned restructure of its European business.
AIG Europe Ltd started preparation to be Brexit-resilient in 2015 and has since set up the two new companies, American International Group UK Ltd and AIG Europe S.A.
AIG Europe S.A. will have branches spanning the European Economic Area and Switzerland and the High Court of England and Wales has allowed AIG to notify policyholders of the transfer of portfolios.
Commenting on the restructuring Anthony Baldwin, chief executive of AIG Europe Limited said:
“We set a number of guiding principles from the very start as to how AIG would address Brexit. First amongst these was minimising disruption to clients. 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. 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.”
The restructure is expected to take effect, and the new companies to begin writing business from 1 December 2018.