Canadian insurance group Fairfax will buy American group AIG’s operations in Romania, Bulgaria, Czech Republic, Hungary, Poland, and Slovakia, the two groups announced on Tuesday, October 18.

The transaction is part of a wider deal in which Fairfax will also take over AIG’s insurance operations in Argentina, Chile, Colombia, Uruguay, Venezuela, and Turkey. The total value of this international deal is around USD 240 million.

“The acquisition of the CEE operations follows on our recent expansion in Eastern Europe through our previously announced QBE transaction and will accelerate our plans for long-term growth in the region,” said Prem Watsa, Chairman and Chief Executive Officer of Fairfax.

Fairfax currently has operations in Poland, Hungary, Czech Republic, Slovakia, and Romania.

AIG operates in Romania through its subsidiary in London based on the European passport. It sells corporate insurance as well as individual accident and illness insurance, travel insurance, and mandatory car insurance (RCA). The company has a market share of only 1%. However, it made a net profit of over EUR 5 million in 2015, based on official data from the Finance Ministry.

AIG sold its life insurance business to American group Metropolitan Life after the 2008 crisis, when the group was saved from collapse by the state.

editor@romania-insider.com