American International Group, Inc. (AIG) announced today an agreement to sell AIG Life Insurance Co. of Canada to BMO Financial Group.
Under the terms of the transaction, BMO will acquire AIG Life of Canada for approximately C$375 million (or approximately U.S. $308 million) in cash, subject to any change in net worth between September 30, 2008 and closing.
The transaction, which is expected to close by June 1, 2009, is subject to certain conditions, including approvals by the appropriate regulatory authorities.
AIG Life of Canada, headquartered in Toronto, Canada, offers a wide range of insurance and wealth products, including universal life and term life insurance plans, critical illness plans, permanent plans and immediate annuities.
AIG Life of Canada has 300 employees and 400,000 customers.
J.P. Morgan Securities acted as financial advisor to AIG on this transaction. Blackstone Advisory Services provided financial advice to AIG in connection with AIG’s global restructuring program.
AIG Life of Canada is organized into three operating divisions: Agency (more than 5,000 active advisors across Canada), Direct (direct-to-consumer marketing operations) and Group (traditional employee benefits insurance).
BMO Financial Group provides retail banking, wealth management, and investment banking products to more than seven million clients and customers across Canada. It is the parent of the Bank of Montreal.
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