Global insurance company American International Group (AIG) has signed an agreement with ASSA Compañía Tenedora and ASSA Compañía de Seguros (ASSA) to sell its operations in Central America, for an undisclosed sum.
Under the deal, ASSA will purchase 100% stake in AIG’s operations of Central American countries El Salvador, Guatemala, Honduras and Panama.
ASSA currently has its presence in Costa Rica, El Salvador, Nicaragua and Panama.
The deal will allow ASSA to enter into the Guatemala and Honduras markets, while expanding operations in other Central American countries.
AIG said all operations, branches, products and benefits of the divested business will continue to operate as usual, until the deal secures regulatory approvals in each country.
AIG Latin America and the Caribbean president and CEO James Dwane said: "In looking for a partner in Central America, AIG found a world class player in ASSA.
"Its deep understanding of the Central American insurance market will help ensure that customers in the region will continue to receive a full range of products and services."
ASSA CEO Eduardo Fábrega said: "ASSA moves toward its goal of being a leading insurer in Central America by adding AIG’s businesses including its talented teams in El Salvador, Guatemala, Honduras and Panama."
In June, AIG Taiwan Insurance sold its consumer and small to mid-size enterprise (SME) businesses to Nan Shan Life Insurance, for around $158m.
AIG provides insurance services to commercial, institutional, and individual customers in around 100 countries and jurisdictions. It also offers life insurance and retirement services in the US.
Image: AIG headquarters on 175 Water Street New York City. Photo: courtesy of AIG.