AIG sells European, South American units to Fairfax

American International Group Inc. on Tuesday said it had entered into several agreements to sell businesses in Europe and South America to Toronto-based Fairfax Financial Holdings Ltd. for about $240 million in cash.

Under the agreements, AIG will sell its local commercial and consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey, the insurer said in a statement.

Fairfax will also acquire renewal rights for the portfolio of local business written by AIG’s Central and Eastern European, or CEE, operations in Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia, and assume AIG’s CEE operating assets and employees. 

The transactions are subject to relevant regulatory approvals.

Fairfax will become the main strategic multinational network partner serving AIG’s global clients in these countries, backed by AIG’s claims handling and reinsurance capabilities, according to the statement.
 
Last month AIG agreed to sell its interest in Ascot Underwriting Holdings Ltd. and related syndicate-funding subsidiary Ascot Corporate Name Ltd. to Canada Pension Plan Investment Board for $1.1 billion.