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October 18, 2016 at 06:07 AM
(Bloomberg) – American International Group Inc. agreed to sell commercial and consumer units in nations including Argentina and Turkey to Prem Watsa’s Fairfax Financial Holdings Ltd. for $240 million as Chief Executive Officer Peter Hancock narrows his company’s focus.
Fairfax will also acquire renewal rights on the portfolio of business written by AIG’s Central and Eastern European operations in countries including Poland, the New York-based insurer said Tuesday in a statement.
Hancock is focusing on property-casualty coverage in nations such as the U.S. and Japan where his company enjoys large market share. He reached a deal in August to sell a mortgage guarantor to Arch Capital Group Ltd. and previously announced transactions to exit operations in Panama, El Salvador and Guatemala. The company has sold more than $90 billion of assets since 2009, mostly to repay a U.S. bailout.
The deal with Toronto-based Fairfax “furthers AIG’s strategic goal of focusing its geographic footprint and investment in major economies that offer the greatest potential for profitable growth,” AIG said in the statement. “At the same time, AIG is committed to maintaining and enhancing multinational capabilities for individuals and companies that operate globally.”
