Global insurer AIG is set to raise up to $670 million from the sale of shares it holds in Bermuda-based insurance and reinsurance specialists Arch Capital Group Ltd.
The secondary share offering has now closed, with the 6,381,410 common shares offered by affiliates of American International Group, Inc. priced at $92.50 per common share, giving an aggregate public offering price of $590,280,425.
Add to that another 957,210 of shares that the deals underwriters could buy from AIG and the potential proceeds near $670 million.
Arch completed an acquisition of United Guaranty Corporation (UGC) from American International Group (AIG) back in January, as the company looked to expand its mortgage insurance businesses by combining UGC’s position as a market leader in the U.S. private mortgage insurance industry with it’s own financial strength.
AIG inherited the shares as part of that acquisition deal and is now selling them in order to fund further growth and expansion of its own insurance business.
The capital gained from selling the shares in Arch will provide AIG with a useful cash injection, giving new CEO Brian Duperreault some further options for growth and expansion.