AIG Selling Its Insurance Business in Bulgaria
US multinational insurance corporation AIG is withdrawing from the insurance business in Bulgaria as part of its decision to leave several markets.
Earlier in October, it announced it would sell some of its Latin American and Eastern European businesses to Canadian company Fairfax Financial Holdings Limited.
The package offered to Fairfax includes local commercial and consumer insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela, and Turkey.
Fairfax will also acquire renewal rights for the portfolio of local business written by AIG's Central and Eastern European (CEE) operations in Bulgaria, Czech Republic, Hungary, Poland, Romania, and Slovakia, and assume AIG's CEE operating assets and employees.
The deal's price tag is around USD 240 M, but it has to be approved by national watchdogs in the countries concerned.
Its insurance portfolio in Bulgaria amounts to some BGN 20 M.
In Bulgaria, AIG will only keep attending to two activities, namely reinsurance and its Shared Services Center in the Bulgaria.