ASSA Compañía Tenedora, S.A. and ASSA Compañía de Seguros (ASSA) will acquire 100 percent of American International Group’s Central American operations in El Salvador, Guatemala, Honduras and Panama in a share purchase agreement, the companies announced.
The transaction is subject to regulatory approvals in each country. Financial terms of the acquisition were not revealed by the companies.
In connection with the transaction, AIG and Panama-based ASSA will establish an on-going business partnership to pursue new opportunities and continue to deliver products as well as “unique customer experiences in Central America,” the companies said.
“In looking for a partner in Central America, AIG found a world class player in ASSA. Its deep understanding of the Central American insurance market will help ensure that customers in the region will continue to receive a full range of products and services,” said James Dwane, AIG president and CEO Latin America and the Caribbean.
“ASSA moves toward its goal of being a leading insurer in Central America by adding AIG’s businesses including its talented teams in El Salvador, Guatemala, Honduras and Panama,” said Eduardo Fábrega, ASSA CEO. “ASSA will strengthen its ability to offer insurance products, serve a broad clientele and will become the only locally owned insurance group with a presence in all Central American countries.”
ASSA has operations in Costa Rica, El Salvador, Nicaragua and Panama. “This agreement will allow ASSA to complete its regional footprint by entering the Guatemala and Honduras markets, as well as strengthen its insurance businesses in El Salvador and ASSA’s leading position in Panama, its home market,” said the statement.
Until this acquisition receives regulatory approvals, the companies said that all operations, branches, products and benefits will continue to operate as usual. “ASSA and AIG will work together to ensure a smooth transition for customers and employees.”
Source: American International Group