AIG Europe forms two companies in advance of Brexit

American International Group Inc.’s European subsidiary, AIG Europe Ltd., has received approval from the High Court of England & Wales to transfer its business into two new entities, AIG UK Ltd. and AIG Europe SA, the insurer said in a statement Thursday.

The move is in preparation for the UK’s exit from the European Union, AIG said, adding that this is the final UK approval needed to complete the restructuring of AIG’s European operations and ensure AIG’s readiness for Brexit.

Both companies will start writing business, and policyholders will transfer from AEL to the relevant new entity on Dec. 1, 2018.  AIG now writes business in Europe from AIG Europe Ltd., a single insurance company based in the UK with branches across Europe, the statement said.

AIG UK will be based in London, and will continue writing business for existing AIG Europe Ltd. UK operations, AIG’s largest single operation in Europe. AIG Europe SA will be headquartered in Luxembourg and have 21 branches across Europe, the statement said.

“We have cleared the final major legal hurdle in our Brexit plans,” Anthony Baldwin, CEO of AIG Europe Ltd. and AIG UK, said in the statement. “All our clients can be assured of past, present and future contract certainty under the new structure.”

AIG had previously named Thomas Lillelund as CEO of AIG Europe SA.