Debevoise Advises AIG in Sale of Certain Latin America, Central and Eastern Europe Operations to Fairfax Financial and in Strategic Partnership

18 October 2016

The New York and London offices of Debevoise & Plimpton LLP have advised American International Group, Inc. (AIG) in several transactions with Fairfax Financial Holdings Limited, a leading global property and casualty insurer and reinsurer, as part of a strategic partnership that will further focus and streamline AIG’s global insurance operations. As part of these agreements, AIG will sell to Fairfax its 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. Total cash consideration is approximately $240 million. Each transaction is subject to relevant regulatory approvals.

Fairfax will become the main strategic multinational network partner that will serve AIG’s global clients in these countries, backed by AIG’s expertise, claims handling, and reinsurance capabilities.

The last month has seen a flurry of deal activity from Debevoise’s insurance team in London. In early October, the group advised Canada Pension Plan Investment Board (CPPIB) in its agreement to acquire, together with the management of Ascot, 100% of Ascot, AIG’s Lloyd’s platform, for a total consideration of $1.1 billion. Further, at the end of September, the team advised MBIA Insurance Corporation in the sale, through its wholly owned subsidiary MBIA UK (Holdings) Limited, of MBIA UK Insurance Limited to Assured Guaranty Corp.

The Debevoise team in the AIG/Fairfax transactions was led by New York partner Andrew L. Bab and included New York partner John M. Vasily and London partners David Innes and James C. Scoville, along with London associates Megan Atkinson, Christopher Garrett, Laurence Hanesworth, Benjamin Lyon and Timothy Merchant and New York associates Angela W. Lee and Kristen A. Matthews. Tax advice was provided by London partner Richard Ward and London associate Paul Eastham. Competition advice was provided by international counsel Timothy McIver and associate Anne-Mette Heemsoth, both of whom are based in London.

Debevoise & Plimpton LLP is a premier law firm with market-leading practices, a global perspective and strong New York roots. We deliver effective solutions to our clients’ most important legal challenges, applying clear commercial judgment and a distinctively collaborative approach.