AIG will sell its insurance operations in Latin America and Turkey to Canada’s Fairfax Financial Holdings, as it streamlines operations to focus on core businesses.

The Canadian holding company, which has been expanding its global insurance empire, will also acquire certain assets and renewal rights written by AIG Europe in Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia.

AIG’s commercial and consumer businesses in Argentina, Chile, Colombia, Uruguay and Venezuela will be under Fairfax ownership.

The combined value of the cash transactions is $US240 million ($312.18 million).

“The divestiture furthers AIG’s strategic goal of focusing its geographic footprint and investment in major economies that offer the greatest potential for profitable growth and the opportunity for AIG’s commercial or consumer insurance divisions to achieve and maintain scale,” the US insurer says.

“At the same time, AIG is committed to maintaining and enhancing multinational capabilities for individuals and companies that operate globally.”

Fairfax says the acquisitions boost its insurance portfolio, which recently added QBE’s operations in the Czech Republic, Hungary and Slovakia for an undisclosed sum.

“The [Latin American] companies are well established in their respective markets, with experienced management teams and a disciplined approach to underwriting, and they will significantly expand Fairfax’s footprint [there],” CEO and Chairman Prem Watsa said.

“The acquisition of the [eastern European] operations follows on our recent expansion [there] through our previously announced QBE transaction, and will accelerate our plans for long-term growth in the region.”

Fairfax recently bought Zurich’s operations in South Africa and Botswana and took a majority stake in Indonesian insurer PT Asuransi Multi Artha Guna. It bought Lloyd’s global specialty insurer and reinsurer Brit last year.

Fairfax has a presence in Australia via subsidiary Odyssey Re, which owns underwriting agency Newline.