Global insurer, American International Group (AIG) has reached an agreement to purchase a UK life protection carrier Ageas Protect from Ageas Group, a Belgium-based international insurer.
Under the terms of the transaction, AIG will pay a sum of £181m ($305m), subject to closing adjustments. Pending receipt of concerned regulatory approvals, the transaction is expected to close during the fourth quarter of 2014.
Ageas Protect, which was launched in July 2008, provides term life, critical illness, and income protection coverage to consumers.
Currently, the acquired entity owns a 4.8% share of new protection business across the UK market, and an 8.4% share of the important UK Independent Financial Advisor (IFA) channel.
In 2013, the company’s written premiums was £91.8m. It has a workforce of nearly 220 people in the UK, and serves more than 300,000 customers in the UK, Channel Islands, and Isle of Man.
AIG Global Consumer Insurance CEO, Kevin Hogan, said: "UK life protection is an attractive market for AIG.
"We are excited about the prospect of enhancing AIG’s significant presence and existing insurance offerings in the UK, and we are committed to the management team, employees, and distributors who have made Ageas Protect the strong company it is today."
Upon completion of the transaction, Ageas Protect will operate as a part of AIG’s Global Consumer business in the UK.
The company will deliver personal accident, health, and travel insurance coverage to consumers, as well as customized insurance solutions for high net worth individuals through AIG Private Client Group.
Serving customers in more than 130 nations and regions, AIG offers property-casualty, as well as life insurance and retirement insurance products and services.
Image: AIG Building on 175 Water Street, New York City. Photo: courtesy of AIG.