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AIG Acquires GE Auto Biz

As part of a $2.15 billion deal in which American International Group agreed to buy the Japanese life insurance business of GE Insurance, AIG will also acquire GEs U.S. auto and home businesses, the two companies announced.

According to a spokesperson for GE Insurance in Richmond, Va., 2002 premiums for GEs U.S. auto and home businesses amounted to $545 million.

In addition to seizing a “significant opportunity to expand AIGs presence in the Japanese life market,” AIGs Chairman Maurice Greenberg said in a statement that the U.S.-based GE auto units would complement AIGs existing domestic U.S. personal automobile insurance business.

GE Insurance said the deal is consistent with its strategy to focus its global operations on key segments where it has the greatest advantage.

“Insurance is a significant part of GE, and this is a great step in redefining GEs insurance business for the future,” said GE Chairman and CEO Jeffrey Immelt.

Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, June 30, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.