Last year we announced that we intend to establish a new European insurance company in Luxembourg. This is to facilitate that we can continue our activities in the European Economic Area (EEA) and Switzerland as soon as the United Kingdom leaves the European Union.
Our restructuring involves the creation of new insurance companies in both the United Kingdom and Luxembourg. The existing UK operations of AIG Europe Limited (AEL) will be transferred to a new British insurance company called American International Group UK Limited (trading under the name "AIG UK"). The existing EEA activities of AEL will be transferred to (and AEL will merge with) the new Luxembourg insurer, AIG Europe SA.
AIG UK and AIG Europe SA have been approved by the British Prudential Regulation Authority (PRA) and the Luxembourg Ministry of Finance. This is a crucial step towards ensuring continuity for AIG after Brexit. This means that, in order to start new activities in the EU, AIG will not depend on the outcome of the negotiations between the UK and the EU.
The next step in our preparations is to set up and notify the branches of AIG Europe SA in all EEA countries where we are located. We will also begin the legal process to transfer the two portfolios. Both new companies will enter into insurance contracts once this transfer is complete. This is planned for December 1, 2018. More information on this can be found in the Cover Letter: AIG approach to Brexit.
We inform you that we have the legal obligation (under English law) to notify policyholders and other parties involved about the intended transfer. This mandatory communication enables policyholders (and other stakeholders, including you as intermediaries) to consider the transfer, to ask questions and, if they wish, to lodge an objection with the British Supreme Court. This must be done in a manner agreed with the PRA and the Financial Conduct Authority (FCA), and is an essential part of the (mandatory) approval procedure at the British Supreme Court. We can not therefore deviate from this. The mandatory communication will consist of the following documents below.