US insurer American International Group has agreed to sell some of its businesses in Latin America and Europe to Canada’s Fairfax Financial Holdings for about $240m.

Under the deal, AIG plans to sell its commercial and consumer insurance operations in Argentina, Chile, Colombia, Turkey, Uruguay and Venezuela.

“The Latam companies are well established in their respective markets with experienced management teams and a disciplined approach to underwriting,” Prem Watsa, Fairfax’s chairman and chief executive officer, said in a statement. “They will significantly expand Fairfax’s footprint in Latin America.”

AIG has been under pressure from shareholders, including activist investors Carl Icahn and John Paulson, to improve its finances.