AIG Buys Irish Health-Insurance Provider Laya

By Angela Chen 

American International Group Inc. on Wednesday said it agreed to acquire Laya Healthcare, Ireland's second-largest health-insurance provider, as the insurance conglomerate looks to grow its health offerings overseas.

"Building on Laya Healthcare's success serving customers in Ireland is an important step in expanding AIG's Health and Consumer strategies," said Jay Sheehy, global head of AIG's health business. Expanding the health business is crucial to AIG's consumer insurance strategy, the company said.

AIG didn't disclose financial details of the transaction, which is expected to close in the first half of the year.

Laya, which has about 500,000 customers, serves more than 23% of the Irish private health market. In addition to health coverage, it offers life, dental and travel insurance. AIG has operated in Ireland for more than 40 years.

AIG has been in transition since former Chief Executive Robert Benmosche retired in September after five years at the helm, during which the company repaid one of the biggest bailout packages of the financial crisis. Under Mr. Benmosche, the once-sprawling financial-services conglomerate sold many of its units, including its aircraft-leasing business and two international life-insurance businesses, to narrow its operations primarily to a global property-casualty insurance business and a U.S. life-insurance and retirement-services unit.

In its most recently reported quarter, AIG posted slightly higher income, with a jump in profits in its life-insurance business and a more modest gain in its core property-casualty unit. Shares of AIG are down about 3% in the past three months through Tuesday's close.

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