American International Group, Inc. announced that its subsidiaries American Home Assurance Company and AIU Insurance Company will purchase the insurance portfolio of the Royal & SunAlliance (RSA) branch operations in Japan.
The agreed on purchase price of the book of business is £92 million ($170 million). AIG’s bulletin said it “expects ongoing annual gross premiums to approximate 11 billion Yen [around $100 million]. The book of business will be administered through the existing AIU and American Home infrastructure in Japan.”
Robert Clyde, President, AIG Companies in Japan and Korea, commented: “The acquisition of this book of business is good for the RSA policy holders and a good strategic fit for AIG. 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. The AIU and American Home units are respectively the leading foreign property-casualty insurance and direct marketing insurers in Japan, and AIG’s presence in Japan dates back 50 years. We have a long term commitment to Japan and a strong established infrastructure to provide these policyholders very responsive service and support.”
The transaction is subject to regulatory approvals and other customary conditions.
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