American International Group Inc. has sold most of its U.S. life insurance premium finance business to First Insurance Funding Corp.
First Insurance Funding, a subsidiary of Wintrust Financial Corp., Lake Forest, Ill., has agreed to pay $679.5 million in cash for the finance business, and it may pay up to $61.2 million for additional life insurance premium finance assets.
A.I. Credit’s property-casualty business is not part of the deal.
Most of the A.I. Credit employees with life insurance premium finance expertise will go to work for First Insurance, according to Wintrust.
“The transaction is a significant step in fulfilling Wintrust’s planned expansion in the life insurance premium finance business,” Wintrust President Edward Wehmer says in a statement about the deal.