Bank of Montreal (BMO) on Tuesday announced it is buying Canadian business of the troubled global insurance giant American International Group.
The bank said it is acquiring the AIG Life Insurance Company of Canada (AIG Life of Canada) for $375 million in cash. The deal will provide its clients with a wider range of investment, financial planning and insurance solutions, the Canadian bank said.
“This acquisition is a perfect extension of our existing wealth management offering and our goal to become the one-stop location for all our clients’ financial and investment needs,” Bank of Montreal president and CEO Bill Downe said in a statement. With the acquisition, he added, the bank will also absorb 300 employees and 400,000 customers of AIG Life of Canada.
The bank said operations of AIG Life of Canada will be integrated with its insurance operations over the next six to 12 months and named BMO Life Insurance Company. Established in 1817, Bank of Montreal is Canada’s oldest bank, and one among the top five in the country. (The Economic Times)