AIG plans to have two subsidiaries in Europe from 2019
American International Group (AIG) is planning to have two subsidiary insurance companies in Europe from 2019 in preparation for Brexit.
The new company in Luxembourg will write European Economic Area (EEA) and Switzerland business.
AIG further stated that it will retain its UK headquarters in London post Brexit.
AIG Europe CEO Anthony Baldwin said: “This is a decisive move that ensures AIG is positioned for whatever form the UK’s exit from the EU ultimately takes. AIG sees opportunity in the ongoing resilience of the UK insurance market.
“At the same time, we are ensuring that our clients and partners experience no disruption from the UK’s EU exit.
From 2019, the insurance giant will maintain two subsidiary insurance firms in the continent, one in the UK to write UK business and the other at Luxembourg which will have branches in the EEA and Switzerland.
According to Baldwin, the Luxembourg subsidiary will complement AIG’s existing structure besides being a part of the single European module.
Further, Baldwin said that Luxembourg being a founding member of the EU provides a secure location in a stable economy for AIG.
Subject to regulatory approval, AIG says that the proposed restructure is likely to be over in the first quarter of 2019.
Presently, the global insurer writes business in Europe from the UK through AIG Europe which is a single insurance company with branches in the EEA and Switzerland.
Britain is the insurer’s largest single operation in the continent and it will continue to provide support to its European operations from the country. AIG stated that it will carry on with its investment and growth plans in the UK even after its exit from the EU.
Earlier in the week, AIG made changes in its technology leadership by naming Martha Gallo as the new chief information officer.
Image: The AIG Towers of Los Angeles. Photo: courtesy of HanSangYoon and Wikipedia.