BMO Financial agrees to purchase AIG Life of Canada

BMO Financial Group (BMO) has agreed to purchase American International Group Inc. (AIG)’s Canadian life insurance subsidiary.
Under the terms of the transaction, BMO will acquire AIG Life of Canada for approximately Cdn$375 million in cash, subject to any change in net worth between Sept. 30, 2008 and closing (expected to be June 1, 2009), says an AIG press release.
“Our management team is excited about becoming an integral part of one of Canada’s premier financial institutions,” said Peter McCarthy, president and CEO of AIG Life of Canada. “As part of BMO Financial Group, we look forward to serving our clients and distribution partners and building on our reputation for providing innovative insurance solutions for Canadians.”
Bill Downe, president and CEO of BMO Financial Group, said, “ We look forward to welcoming the 300 employees and the 400,000 customers of AIG Life of Canada.
“Acquiring AIG Life of Canada will strengthen BMO’s overall financial planning, wealth and retirement offering, giving us the ability to expand our client relationships through a comprehensive line-up of products.”
The transaction is subject to certain conditions, including approvals by the appropriate regulatory authorities.