American International Group said it will pay $305 million for the U.K. life protection insurance division of Belgium’s Ageas Group.
Assuming regulators sign off on the deal to by Ageas Protect Ltd, the sale will close in the 2014 fourth quarter, AIG said. Once that happens, the division will get folded into AIG’s Global Consumer business.
Ageas Protect Ltd launched in July 2008 and offers products in the U.K. including term life, critical illness and income protection coverage for consumers. It seems to be a complementary fit with AIG’s Global Consumer line, which in the U.K. writes personal accident, health and travel insurance coverage for consumers. As well, the division writes customized products for high net worth individuals through AIG Private Client Group, AIG noted.
AIG is purchasing the line because it sees huge growth potential down the line.
“U.K. life protection is an attractive market for AIG,” Kevin Hogan, AIG’s CEO of Global Consumer Insurance, said in a statement. “We are excited about the prospect of enhancing AIG’s significant presence and existing offerings in the U.K. and we are committed to the management team, employees and distributors who have made Ageas Protect the strong company it is today.”
Source: AIG
Ageas Protect produced nearly $154.6 million in premiums in 2013, from 300,000 customers in the U.K., Cannel Islands and Isle of Man, AIG said. About 200 people work for the division, which has a 4.8 percent share of new protection business in the U.K. market and an 8.4 percent share of the U.K. Independent Financial Advisor Channel.
This is likely the last major acquisition deal under AIG President and CEO Robert Benmosche, who is retiring after five years in charge. His tenure involved turning around and revamping a company that nearly collapsed during the 2008 financial crisis. Peter Hancock, CEO of AIG Property Casualty and an executive vice president, will formally replace Benmosche as of Sept. 1.