Posted on Aug 09, 2010 by Sergio Ulloa
In part of its pending takeover of ALICO, MetLife has been given regulatory approval for the purchase of ALICO's local, wholly-owned subsidiary AHICO.
The regulatory approval for transfer of AHICO is part of the deal between AIG and MetLife Inc., which will see MetLife buy AIG's international life insurance business, American Life Insurance Company (ALICO)
for USD 15.5 billion (EUR 11.7 billion).
The purchasing price is comprised of USD 6.8 billion (EUR 5.1 billion) in cash and USD 8.7 billion (EUR 6.5 billion) in equity, including common stock, contingent convertible preferred stock and equity units. The transfer of equity from MetLife to AIG for the purchase of ALICO gives AIG a 20 percent stake in MetLife, once the equity units convert to common stock 3 years after the deal is closed.
First American-Hungarian Life Insurance Company (AHICO) was the 100 percent wholly owned subsidiary of ALICO, set up in 1990 to serve the local Hungarian market. After getting approval from the Hungarian financial markets regulator PSzÁF, AHICO can begin on the transfer of ownership to MetLife.
Despite the change in ownership, there are no foreseeable alterations to AHICO's business. The takeover by MetLife will not affect AHICO's tax registration, claims settlement procedures, or any insurance policies in force, other than the fact that AHICO will become part of a larger international business network spanning 60 countries, business will continue as usual.
Insurance Companies Mentioned:
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
The American Life Insurance Company, generally known as Alico, provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With a wide range of products to support every aspect of their customers' lives, and provide comprehensive cover for the employees and commercial needs of their business clients. Their products include; health insurance, life insurance, savings plans, accident insurance, retirement planning and travel insurance among others.
AHICO First American-Hungarian Insurance Company was 100 percent owned by ALICO, prior to the buyout of ALICO by MetLife Inc. AHICO was established in Hungary in December 1990, and has a registered capital of HUF 1 billion (USD 4.7 million).
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.