American International Group Inc.’s business in Brazil agreed to transfer about 25,000 auto policies to a unit of Porto Seguro SA as the U.S. company scales back its international businesses.
The deal is subject to regulatory approval, Sao Paulo-based Porto Seguro said Monday in a regulatory filing that didn’t disclose terms. AIG will stop offering home, personal accident and group life coverage in Brazil, the company said in a separate statement. The firm said it will cover those clients for the remainder of their policies, while the auto portfolio will be managed until approvals are granted.
AIG Chief Executive Officer Peter Hancock is retreating from personal insurance in some regions, telling investors in an annual report that he would exit 47 countries to concentrate on key markets. The New York-based company has sold units in Central America and Taiwan, as well as shares in Chinese insurer PICC Property & Casualty Co.
“AIG has been in Brazil for almost 70 years and the country plays a vital role in our overall success,” the insurer said in its statement. “We remain committed to our local and multinational clients, offering a broad portfolio of innovative solutions, including combined solutions for small and medium sized businesses, which we expect to open new opportunities for our brokers partners and their businesses.”
Hancock said in January that he would seek to return $25 billion to shareholders over two years, with as much as $7 billion coming from divestitures. This year, he agreed to sell a mortgage guarantor, a broker-dealer network and an operation in London.
AIG slipped 1.1 percent to $58.70 at 2:40 p.m. in New York. It has dropped 5.3 percent this year, compared with a 5.6 percent climb in the S&P 500 Index.