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US-based insurance and financial services provider AIG announced Tuesday it would be selling off a number of units, including several Latin American subsidiaries, to Canada's Fairfax Financial Holdings for US$240mn in cash.
The sale is "part of a strategic partnership that will further focus and streamline AIG's global insurance operations." Pressure from investors has forced the insurance giant to reduce the scale and complexity of its global business empire.
AIG will be selling its commercial operations and insurance businesses in Argentina, Chile, Colombia and Uruguay, as well as Turkey.
"The LatAm companies are well established in their respective markets with experienced management teams and a disciplined approach to underwriting, and they will significantly expand Fairfax's footprint in Latin America," said Fairfax CEO Prem Watsa in a statement.
AIG announced earlier this month that it would be restructuring its Brazilian subsidiary in 2017 after suffering some of the largest losses of any insurer in the country. Before that, in August, the insurer sold its mortgage guarantor unit Arch Capital Group Ltd for nearly US$3.4bn.