AIG has sold its Central American businesses to Panama-based financial services group ASSA.

ASSA will acquire 100% of AIG’s operations in El Salvador, Guatemala, Honduras and Panama.

The transaction – which will see AIG and ASSA establish an ongoing partnership – is subject to regulatory approvals in each country.

“In looking for a partner in Central America, AIG found a world-class player in ASSA,” AIG President and CEO Latin America and the Caribbean James Dwane said.

“Its deep understanding of the Central American insurance market will help ensure customers in the region will continue to receive a full range of products and services.”

Until the transaction is approved, all operations will continue as usual.