AIG sells Canadian life business to BMO Financial
American International Group (AIG) has announced that it is selling its Canadian life insurance business to BMO Financial Group (BMO), also known as Bank of Montreal.
AIG Life Insurance Company of Canada, (AIG LICC) is based in Toronto and will be changing hands for around US$305 million once regulatory approval is secured.
The acquisition will enhance BMO’s offering with a diverse range of insurance and wealth products, including universal life, term life, critical illness, permanent plans and immediate annuities.
AIG LICC employs around 300 staff servicing 400,000 customers.
The business has three operating divisions: Agency, which comprises over 5,000 active advisors across Canada; Direct, which involves direct-to-consumer marketing operations; and Group, which provides traditional employee benefits insurance.
BMO will integrate the business into its insurance operations to create a new company, BMO Life Insurance Co.
The acquisition should be completed by June 2009 and is expected to be earnings enhancing in one year.
The sale forms part of a round of disposals being made by AIG as it refocuses on its core property/casualty business after coming close to collapse in September of last year.
Category: Companies News, Insurance News
Visited 1811 times, 1 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.