Toronto-based Fairfax Financial Holdings Ltd has entered agreements to buy several of
AIG’s business units in Latin America and Central and Eastern Europe.
The units will be sold for approximately $240 million in cash, with each transaction to be subjected to regulatory approval.
Specifically, AIG is looking to sell its local commercial and consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela, and Turkey. The deal will also see Fairfax acquiring the renewal rights for the portfolio of local business written by AIG’s Central and Eastern European operations in Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia.
Following the deal, Fairfax will serve as “the main strategic multinational network partner” to AIG’s global clients in the listed countries, a release said.
“We are very excited to partner with AIG and to have the LATAM group of companies and operations in CEE and Turkey join the Fairfax family,” commented Fairfax chairman and CEO Prem Watsa. “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 from 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 was recently pressured by shareholders—most notably by billionaire Carl Icahn—to streamline its operations in an attempt to avoid tighter Federal Reserve regulations.
Fairfax, through its subsidiary FairVentures, has recently invested in several insurance-related ventures, such as FinTech start-ups and in Dozr—a heavy equipment leasing company looking to be the first in the industry to rent out equipment with insurance coverage.
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