American International Group has solidified its post-Brexit strategy for Europe, with plans to establish two separate corporate entities to give clients greater certainty about the continuity of coverage.
AIG previously announced earlier this year that it would launch a corporate entity in Luxembourg to address challenges created when the United Kingdom leaves the European Union beginning in 2019. A second AIG operation will be established in the United Kingdom, to replace its existing corporate entity there, according to the new announcement. Both moves will give clients the certainty of uninterrupted UK and European insurance coverage, AIG said.
“We set a number of guiding principles from the very start as to how AIG would address Brexit. First among these was minimizing disruption to clients,” Anthony Baldwin, chief executive of AIG Europe Ltd., said in prepared remarks. “The great advantage of the restructuring route we have chosen is that it will give clients certainty that whatever the other unknowns of Brexit for their businesses, their European insurance coverage has been Brexit-proofed.
As far as the details of these changes, AIG said that all EU business will be shifted to both new corporate entities (American International Group UK Ltd. in the UK and AIG Europe SA in Luxembourg) before the UK leaves the European Union. They’ll start operating Dec. 1, 2018.
Plans call for transferring AIG Europe Ltd.’s existing insurance business to the new UK and European companies, and its existing carrier, AIG Europe Ltd., will be blended into the new EU company. AIG’s EU arm will have branches across the European Economic Area and in Switzerland.
AIG said it has been actively preparing to be “Brexit resilient” since 2015, when the referendum became likely. The insurer also touts its “leadership position in the industry with its Brexit restructuring plans.”
Source: AIG