American International Group, Inc. (AIG) has announced the closing of its $5.56 billion acquisition of Validus Holdings, Ltd. following the receipt of regulatory approvals and approval of Validus shareholders.
The deal was first announced on January 22nd, 2018, and sees AIG gain some attractive and diversified franchises, including reinsurer Validus Re, insurance-linked securities (ILS) asset manager, AlphaCat, a Lloyd’s of London syndicate, called Talbot, as well as Western World, a specialist in U.S. small commercial excess and surplus underwriting, and Crop Risk Services, which offers access to the North American crop insurance market.
Brian Duperreault, President and Chief Executive Officer (CEO) of AIG, commented: “We are very pleased to welcome Validus to AIG. Validus’ experienced team and complementary businesses will help us deliver sustainable, profitable growth as we continue to build value for our shareholders.”
The transaction is valued at $5.56 billion, and it’s hoped that the acquisition will see the well-respected Validus management and underwriting teams enhance AIG’s global insurance and reinsurance footprint, supporting its strategic growth aims as it looks to deliver profitable growth.
Peter Zaffino, AIG’s CEO of General Insurance, added: “We look forward to working with the Validus team on the expanded capabilities and value we can deliver to our clients and broker partners. The Validus businesses will be immediately accretive to our performance in General Insurance now that they are officially part of AIG.”
