The Bank of Montreal has agreed to pay $308 million in cash for AIG Life Insurance Company of Canada.
The Bank of Montreal, Montreal, which does business as BMO Financial Group, hopes to complete the deal by June 1, according to BM and American International Group Inc., New York.
AIG has been trying to sell assets to cope with severe problems at its credit default swaps operations and other derivatives operations.
AIG Life of Canada, Toronto, sells whole life insurance, universal life insurance, term life insurance, critical illness insurance and immediate annuities.
AIG Life of Canada has about 300 employees, 400,000 customers and relationships with about 5,000 brokers.
BMO’s BM Nesbitt Burns Financial Services Inc. unit has 74 branches and about 1,400 financial advisors.