American International Group, Inc. (NYSE:AIG) today announced that it has agreed to sell its Japan life insurance business AIG Fuji Life Insurance Company, Ltd. (AFLI) to FWD Group, the insurance arm of Pacific Century Group. The transaction is subject to regulatory approvals. Terms of the deal were not disclosed.
This transaction does not affect AIG's extensive non-life insurance business in Japan, the largest of any foreign-based insurer in the country
AIG will continue to focus on Japan's property and casualty (P&C) market through its local subsidiaries Fuji Fire & Marine, Ltd., AIU Insurance Company, Ltd., and American Home Assurance Company, Ltd. These companies provide commercial insurance and services, as well as personal insurance coverage lines, including accident & health, auto, homeowners, and travel insurance. Japan, where AIG has operated since 1946, is the third largest commercial market and the largest personal insurance market globally for AIG, based on net premiums written by country.
"Like other actions we've taken this year, the sale of AIG Fuji Life makes us a leaner insurer that's better focused on the geographies and segments where we have the critical mass and expertise to provide tremendous value to our clients," said Peter Hancock, President and Chief Executive Officer, AIG.
"In this core market for AIG, we are committed to growing both our commercial and consumer personal insurance lines. At the same time, our AFLI clients and colleagues will benefit from FWD's commitment to growing the life business in Japan. Beyond the deal's close, we look forward to partnering with FWD on life distribution in support of its goals, and in exploring other future opportunities."
Following completion of the deal, FWD Group will maintain AFLI's existing life insurance distribution agreements with AIG Japan. In-force policies will not be affected by the expected transfer of ownership.
Since FWD's establishment in 2013, it has become a pan-Asian life insurer across Thailand, Indonesia, the Philippines, Singapore and Vietnam with a strong base in Hong Kong and Macau. FWD's entry into Japan, the second largest life insurance market in the world, further extends its regional footprint and is part of its vision to become a leading pan-Asian insurer.
"AIG Fuji Life is a strong foundation for FWD's entry to Japan and our partnership with AIG will give FWD access to an extensive distribution network with an established customer base. We aim to develop and grow AFLI through investment in the long-term and our customer-led, technology-driven approach." said Huynh Thanh Phong, FWD Group Chief Executive Officer.
AFLI was founded in 1996 as a subsidiary of The Fuji Fire and Marine Insurance Company. The company has achieved rapid growth through the development of competitive life insurance products and new distribution channels.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, including the closing of the transaction described herein, are not historical facts but instead represent only AIG's belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG's control. Except for AIG's ongoing obligation to disclose material information as required by federal securities laws, AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise. Factors that could cause AIG's actual results to differ, possibly materially, from any forward-looking statements include the factors set forth in AIG's filings with the United States Securities and Exchange Commission.