AIG has agreed to buy Irish health insurance provider Laya Healthcare, for an undisclosed sum.

The transaction is expected to close in the first half of this year, subject to regulatory approval.

Laya Healthcare said it is business as usual when it comes to members’ day-to-day dealings with the company. The company will continue to operate in Cork, where it employs 450 people.

“AIG’s global scale and reach presents us with the opportunity to expand the Laya Healthcare offering in Ireland and across Europe where AIG has significant plans for growth,” Laya managing director Dónal Clancy said.

“Swiss Re subsidiary Elips Insurance will continue to underwrite our health insurance policies and IptiQ Life will underwrite life insurance policies,” he added.

International insurance organisation AIG currently provides motor, home, personal accident and travel insurance to the Irish market, as well as commercial insurance products. The Laya deal is expected to expand AIG Health’s global footprint and accelerate plans for EMEA growth.

“Our investment in Ireland will broaden the footprint of AIG’s Health business which up until now has primarily focused on the US and Asia,” AIG global head of health Jay Sheehy said.

He said the expertise within Laya Healthcare and the company’s ability to outperform in an extremely challenging market were key attractions for AIG in the deal.

“The strength of the Laya Healthcare management team and how they have grown their market share despite record declines in the health insurance market highlights the potential for further growth,” he added.

AIG has been in Ireland for 40 years, and has a significant IT and asset management presence in the country, supporting its European and global operations. The company expanded in Dublin last year, opening an EMEA Treasury Operations Centre in the capital. It currently employs approximately 400 staff across a range of activities based out of the IFSC

Operating in Ireland since 1997, Laya Healthcare has nearly 500,000 customers, and serves more than 23 per cent of the Irish private health market.

First established as Bupa Ireland, Laya was launched in May 2012 following a management buyout of Quinn Healthcare. The company is second largest healthcare provider in the Irish market. When it launched in 2012, it initially promised to create 100 jobs by 2015. The firm has already met that target, with its current headcount at more than 450.