AIG’s European subsidiary, AIG Europe (AEL), has received the final UK approval needed to complete the restructuring of AIG’s European operations and ensure AIG’s readiness for Brexit.
AIG Europe received approval from the High Court of England and Wales to transfer its business into two new entities: AIG UK and AIG Europe SA in preparation for the UK’s exit from the EU.
Transferring to a two-entity structure will enable AIG to 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 EU.
Both entities will begin writing business and policyholders will transfer from AEL to the relevant new entity on 1 December 2018.
Currently, AIG writes business in Europe from AEL, a single insurance company, based in the UK with branches across the continent.
As part of the restructure, AEL will merge into AIG Europe SA, which will be headquartered in Luxembourg with 21 branches across the European Economic Area and Switzerland.
Based in London, AIG UK will continue the business of AEL’s existing UK operations.
Anthony Baldwin, CEO of AEL and AIG UK, said the restructure represented a milestone as it guaranteed its clients access to its full range of capabilities after Brexit.
Baldwin commented: “Today is an important day most of all for our clients.”
He explained: “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 EU.”
“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.”