AIG Life has agreed to acquire specialist group life risk protection firm Ellipse.
AIG Life, which is a UK subsidiary of AIG Life & Retirement, will buy the business from Munich Re.
Ellipse provide life, critical illness and income protection products, launching in 2009 to become the sixth largest UK group life provider in 2017 based on new business volumes.
It holds almost 4,500 in-force policies, covering more than 370,000 lives, with in-force premiums worth £64m.
AIG stated the acquisition would allow it to efficiently manage group risk schemes for companies of all sizes.
Adam Winslow, chief executive at AIG Life, said: “Ellipse’s group life business is highly complementary to the AIG individual protection offering and positions us to capitalise on the strong growth potential in the UK group market by allowing us to provide a holistic suite of innovative protection products.”
Thomas Braune, chief executive at Munich Re, said: “We are glad to have found a trusted partner for this deal, paring the right strategic fit on their side with a good opportunity for us to refocus our UK market approach.”
The terms of the transaction were not disclosed. AIG said the acquisition, which is expected to close in the first quarter of 2019, would be fully funded with cash.