AIG has received judicial approval to split its European subsidiary into two new entities, as the insurer prepares for business after Brexit.
The High Court of England and Wales has given AIG Europe, known as AEL, the go-ahead to restructure and transfer its business to new subsidiaries: AIG International Group UK, or AIG UK, to be headquartered in London; and AIG Europe SA, or AESA, to be based out of Luxembourg.
AESA will have 21 branches across the European Economic Area and Switzerland, and both new companies will begin writing business on 1 December 2018.
AIG’s European operation is currently based out the company’s London offices in Fenchurch Street, with the help of other branches in Europe.
The planned restructuring, announced earlier this year, will see AEL merged into AESA, with the new AIG UK continuing the insurer’s operations in the UK.
The division of business between AIG UK and AESA will guarantee that AIG will be able to continue to service customers and honour contracts across the UK and continental Europe after the UK’s exit from the European Union – currently scheduled for March 2019 – and the changes in passporting arrangements that could bring.
Anthony Baldwin, pictured, CEO of AEL and AIG UK, said: “Today is an important day most of all for our clients, as we can now guarantee them access to the full range of our capabilities after Brexit.
“We have cleared the final major legal hurdle in our Brexit plans which will enable us to offer our clients, partners and colleagues certainty that AIG is ready to overcome the challenges posed to the insurance industry by Brexit, regardless of the UK’s future relationship with the European Union.
“All our clients can be assured of past, present and future contract certainty under the new structure. As we launch our two new legal entities to ensure the smooth operation of our business across Europe after Brexit, it’s an exciting time for AIG.”
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