AIG Europe Limited’s (AEL) decision to locate an insurance company in Luxembourg once the UK leaves the European Union will have “no impact at all” on AIG Life.
From 2019, AIG proposes to have two AIG subsidiary insurance companies in Europe – one in the UK to write UK business, and one in Luxembourg to write European Economic Area (EEA) and Swiss business, which will have branches across the EEA and Switzerland.
AIG currently writes business in Europe from a single insurance company based in the UK, AIG Europe Limited, which has branches across the EEA and Switzerland.
The proposed restructure is expected to complete in Q1 2019, subject to regulatory approval.
Anthony Baldwin, chief executive of AIG Europe 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. Our Luxembourg company will be complementary to our existing structure and will be part of our single European module.”
He added: “Luxembourg, a founding member of the European Union, offers us a secure location in a stable economy with an experienced and well-respected regulator in continental Europe close to many of our major markets.”
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A spokeswoman for AIG Life told Life Insurance International “Today’s announcement about AIG Europe Limited (AEL) will have no impact at all on AIG Life. AIG Life Limited is a separate legal entity to AEL, and as a UK life insurer we anticipate there should be no impact on us by the UK’s exit from the European Union.”
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