AIG Buys Royal & SunAlliance Japan Unit
NU Online News Service, Nov. 11, 3:45 p.m. EDT?Subsidiaries of American International Group in Japan have purchased the insurance portfolio of Royal & SunAlliance's branch operations in Japan for ?92 million,(U.S.$169.5 million).[@@]
The AIG subsidiaries making the purchase are American Home Assurance Co. and AIU Insurance Co. AIG officials said it expects ongoing annual gross premiums of approximately 11 billion yen, or $103 million, from the acquisition. The book of business will be administered through the existing AIU and American Home infrastructure in Japan, AIG officials said.
Royal & SunAlliance, based in Great Britain, has been divesting itself of overseas assets to streamline its operations.
Robert Clyde, president, AIG Cos. in Japan and Korea, said the acquisition is a good strategic fit for AIG. Mr. Clyde said it will provide substantial opportunities to profitably expand AIG's presence in Japan in several important markets, including personal accident, commercial property and marine insurance.
AIG said the AIU and American Home units are respectively the leading foreign property-casualty insurance and direct marketing insurers in Japan. Mr. Clyde said AIG has done business in Japan for 50 years.
The deal is subject to regulatory approvals and other customary conditions, AIG officials added.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
