- \n
- \nDivestiture of AIG\u2019s Treaty Reinsurance Business Continues Progress on AIG\u2019s Portfolio Repositioning, Reduces Volatility in Underwriting Results, Accelerates Focus on Insurance Business, Increases Liquidity and Unlocks Significant Capital<\/p>\n<\/li>\n<\/ul>\n
- \n
- \nTransaction Includes Validus Re, AlphaCat and the Talbot Treaty Reinsurance Business; Transaction Excludes Talbot Underwriting Ltd., Western World and Crop Risk Services<\/p>\n<\/li>\n<\/ul>\n
- \n
- \nRenaissanceRe to Pay $2.985 Billion on the Closing Date, Consisting of $2.735 Billion in Cash and $250 Million in RenaissanceRe Common Shares; AIG to Receive all Capital in Excess of $2.1 Billion of Shareholders\u2019 Equity of Validus Re and Achieve Future Capital Synergies of Approximately $400 Million from the Recapture of Reserves as a Result of Transferring the Validus Re Balance Sheet to RenaissanceRe, which together, as of December 31, 2022, was over $1.5 Billion; Total Transaction Value to AIG is Expected to Exceed $4.5 Billion<\/p>\n<\/li>\n<\/ul>\n
- \n
- \nAIG Entitled to Receive Additional Cash Consideration Over Time Through Value Sharing of Reserve Redundancies that may Emerge, as well as Net Income Generated from the Business Through the Closing<\/p>\n<\/li>\n<\/ul>\n
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- \nFollowing the Closing, AIG Expects to Make Significant Investments in RenaissanceRe\u2019s DaVinci Reinsurance and Fontana Re Managed Funds, Strengthening Partnership between Companies<\/p>\n<\/li>\n<\/ul>\n
NEW YORK–(BUSINESS WIRE<\/a>)–
\nAmerican International Group (NYSE: AIG) today announced that it has entered into a definitive agreement to sell Validus Re, including AlphaCat and the Talbot Treaty reinsurance business, to RenaissanceRe Holdings Ltd. (NYSE: RNR) (\u201cRenaissanceRe\u201d) for $2.985 billion, consisting of $2.735 billion in cash and $250 million in RenaissanceRe common shares. In addition, AIG will receive all capital in excess of $2.1 billion of shareholders\u2019 equity of Validus Re and achieve future capital synergies of approximately $400 million from the recapture of reserves as a result of transferring the Validus Re balance sheet to RenaissanceRe, which together, as of December 31, 2022, was over $1.5 billion. The total estimated transaction value is expected to exceed $4.5 billion.<\/p>\n\nAIG will retain Talbot Underwriting and Western World, which were purchased as part of its 2018 acquisition of Validus Holdings Ltd. and which currently represent approximately $1.6 billion of AIG\u2019s total gross premiums written. On May 2, 2023, AIG announced that it reached an agreement to sell Crop Risk Services, also purchased as part of the 2018 acquisition of Validus Holdings Ltd. in 2018, to American Financial Group, Inc. for $240 million; this transaction is expected to close in the third quarter of 2023.<\/p>\n
\nThe sale of Validus Re is expected to close in the fourth quarter of 2023, subject to regulatory approvals and other customary closing conditions. Following the closing, AIG expects to make significant investments in RenaissanceRe\u2019s DaVinci Reinsurance and Fontana Re managed funds through AIG\u2019s Investment portfolio.<\/p>\n
\nPeter Zaffino, Chairman and Chief Executive Officer of AIG, commented: \u201cToday\u2019s announcement represents another key milestone for AIG and is strategically significant for both AIG and Validus Re. For AIG, it further simplifies our business model and reduces volatility in our portfolio, while generating significant cash liquidity and capital efficiencies that enable us to accelerate our capital management strategy.<\/p>\n
\n\u201cWe have spent the last several years transforming Validus Re by re-underwriting the portfolio and driving operating leverage leading to improved outcomes. As part of RenaissanceRe, Validus Re will benefit from global scale that will allow the business to continue to grow, expand its capabilities and drive value for clients and other stakeholders.<\/p>\n
\n\u201cAt the same time, our investment in RenaissanceRe\u2019s common shares demonstrates our commitment to the strong relationship we have with RenaissanceRe and, coupled with our investment in DaVinci Reinsurance and Fontana Re, will allow us to continue to participate in the growth of the reinsurance market with less risk and capital requirements. I have enormous respect for Kevin and RenaissanceRe and look forward to continuing our longstanding and successful partnership.\u201d<\/p>\n
\nEvercore Group L.L.C. and J.P. Morgan Securities LLC acted as financial advisors, and Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP acted as legal counsel for AIG.<\/p>\n
About AIG<\/span><\/b><\/p>\n
\nAmerican International Group, Inc. (AIG) is a leading global insurance organization. AIG member companies offer insurance solutions that help businesses and individuals in approximately 70 countries and jurisdictions protect their assets and manage risks. AIG common stock is listed on the New York Stock Exchange.<\/p>\n
\nAdditional information about AIG can be found at www.aig.com<\/a> | YouTube: www.youtube.com\/aig<\/a> | Twitter: @AIGinsurance www.twitter.com\/AIGinsurance<\/a> | LinkedIn: www.linkedin.com\/company\/aig<\/a>. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.<\/p>\n
\nAIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com<\/a>. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries and jurisdictions, and coverage is subject to underwriting requirements and actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.<\/p>\n
Forward Looking Statements<\/span><\/b><\/p>\n
\nCertain statements in this press release and any related oral statements constitute forward-looking statements. These statements are not historical facts but instead represent only the relevant party\u2019s belief regarding future events, many of which, by their nature, are inherently uncertain and outside the relevant party\u2019s control. It is possible that the transactions will not be completed within the expected timeframes or at all, or that the transactions will take a materially different form from those contemplated by these statements. Each party referenced in this press release only assumes responsibility for its statements and does not affirm or otherwise adopt the statements of any other party.<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230522005650\/en\/<\/a><\/span><\/p>\n
\nQuentin McMillan (Investors): quentin.mcmillan@aig.com
\n<\/a>
Dana Ripley (Media): dana.ripley@aig.com<\/a><\/p>\nKEYWORDS:<\/b> New York United States North America<\/p>\n
INDUSTRY KEYWORDS:<\/b> Insurance Professional Services<\/p>\n
- \nFollowing the Closing, AIG Expects to Make Significant Investments in RenaissanceRe\u2019s DaVinci Reinsurance and Fontana Re Managed Funds, Strengthening Partnership between Companies<\/p>\n<\/li>\n<\/ul>\n
- \nAIG Entitled to Receive Additional Cash Consideration Over Time Through Value Sharing of Reserve Redundancies that may Emerge, as well as Net Income Generated from the Business Through the Closing<\/p>\n<\/li>\n<\/ul>\n
- \nRenaissanceRe to Pay $2.985 Billion on the Closing Date, Consisting of $2.735 Billion in Cash and $250 Million in RenaissanceRe Common Shares; AIG to Receive all Capital in Excess of $2.1 Billion of Shareholders\u2019 Equity of Validus Re and Achieve Future Capital Synergies of Approximately $400 Million from the Recapture of Reserves as a Result of Transferring the Validus Re Balance Sheet to RenaissanceRe, which together, as of December 31, 2022, was over $1.5 Billion; Total Transaction Value to AIG is Expected to Exceed $4.5 Billion<\/p>\n<\/li>\n<\/ul>\n
- \nTransaction Includes Validus Re, AlphaCat and the Talbot Treaty Reinsurance Business; Transaction Excludes Talbot Underwriting Ltd., Western World and Crop Risk Services<\/p>\n<\/li>\n<\/ul>\n
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