AIG prepares for Brexit

American International Group, Inc. announced on Thursday that it has received authorization for two new insurance companies that will absorb its existing European and U.K. business in advance of the U.K. leaving the European Union.

Related: Chubb announces plan to relocate EU headquarters following Brexit

The restructuring will transfer AIG Europe Limited’s existing business to the newly created American International Group UK Limited for customers in the U.K., and AIG Europe S.A. for customers in Europe. AIG Europe Limited will be merged into AIG Europe S.A.

“We set a number of guiding principles from the very start as to how AIG would address Brexit,” Anthony Baldwin, CEO of AIG Europe Limited, said in a news release. “First amongst these was minimizing disruption to clients. The great advantage of the restructuring route we have chosen is that it will give clients certainty that whatever the other unknowns of Brexit for their businesses, their European insurance coverage has been Brexit-proofed.”

The restructuring is expected to take effect on December 1, 2018, at which time both new companies will begin writing business.

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This story was originally published by Canadian Insurance Top Broker.