American International Group announced that its European subsidiary, AIG Europe Limited (AEL) has received approval from the High Court of England & Wales to transfer its business to two new entities: American International Group UK Limited (AIG UK) and AIG Europe SA (AESA) in preparation for the UK's exit from the European Union.

"This is the final UK approval needed to complete the restructuring of AIG's European operations and ensure AIG's readiness for Brexit," the company announced in a statement.

AIG currently writes business in Europe from AEL, a single insurance company based in the UK with branches across Europe. As part of the restructure, AIG will merge AEL into AESA.

AIG UK will be based in London, UK, and will continue the business of AEL's existing UK operations. The UK is AIG's largest market in Europe.

AESA will be headquartered in Luxembourg City, Luxembourg, with 21 branches across the EEA and Switzerland.

Both companies will start writing business and policyholders will transfer from AEL to the relevant new entity on December 1, 2018.