SAO PAULO -(Dow Jones)- Brazilian bank Banco Unibanco (UBB) acquired certain local assets of American International Group Inc. (AIG) for $820 million, the bank said in a statement Wednesday night.
Unibanco
said it will acquire a 49% stake in a joint venture called Unibanco AIG Seguros S.A.
AIG and Unibanco have jointly operated insurance and pension fund services under the name Unibanco AIG Seguros S.A since 1997.
After the conclusion of the deal, Unibanco AIG Seguros' name will be changed to Unibanco Seguros S.A, or Uniseg.
"Following completion of the agreement, Unibanco will assume full control of Uniseg and continue to grow its insurance and pension businesses. AIG will continue to bring its insurance products and services to the Brazilian market through AIG Brasil, while continuing to work with Uniseg in many business opportunities, namely in reinsurance and corporate insurance," Unibanco and AIG said in a joint statement.
Unibanco AIG Seguros is Brazil's fourth-largest insurance company with total assets of BRL12 billion ($5.3 billion). The company posted a net profit of BRL191 million in the first half of 2008. Before the current deal, Unibanco owned 51% of Unibanco AIG Seguros.
The insurance unit in Brazil was the fourth-largest owned by AIG outside the U.S.
The U.S. Federal Reserve Board earlier this year agreed to provide up to $85 billion to help AIG meet its liquidity requirements in the face of a spreading credit crisis.
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