AIG sells Japan life insurance division to Hong Kong insurer

American International Group Inc. said it has agreed to sell its Japan life insurance business, AIG Fuji Life Insurance Co. Ltd., to Hong Kong-based FWD Group Management Holdings Ltd.

Terms of the deal were not disclosed.

AIG said Monday in a statement that the transaction, which is subject to regulatory approval, does not affect AIG’s nonlife insurance business in Japan.

AIG said it will continue focusing on Japan’s property/casualty market through local subsidiaries Fuji Fire & Marine Ltd., AIU Insurance Co. Ltd. and American Home Assurance Co. Ltd. These companies provide commercial insurance and services, as well as personal insurance coverage lines, including accident and health, auto, homeowners and travel insurance. 

AIG said Japan, where the insurer has operated since 1946, is its third-largest commercial market and its largest personal insurance market globally, based on net written premiums by country.

FWD Group, the insurance arm of investment firm Pacific Century Group, will maintain AFLI’s existing life insurance distribution agreements with AIG Japan, and in-force policies will not be affected by the expected transfer of ownership, according to AIG’s statement.

Last month AIG said it would sell its local commercial and consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela and Turkey to property/casualty insurer Fairfax Financial Holdings Ltd. 

AIG also sold Fairfax 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.

Earlier this month, AIG started withdrawing from the Ugandan insurance market as part of its effort to reduce its presence in smaller markets.