Reinsurance News

AIG to sell $600m Arch shares gained from United Guaranty sale

9th June 2017 - Author: Steve Evans

Insurer AIG is to sell $600 million worth of shares it owns in Bermudian insurance and reinsurance group Arch Capital Group Ltd., a holding that AIG gained when it sold mortgage insurer United Guaranty to Arch.

AIG flagArch completed its 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.

The $600 million of shares AIG is offloading were gained as part of the acquisition payment, when it earned Series D Convertible Preferred Shares as part of the payment which are now to be converted into Common Shares to be sold at market.

The underwritten public secondary offering will feature 6,381,410 common shares that will be sold by affiliates of AIG, with an option for the underwriters to purchase up to an additional 957,210 common shares at the public offering price, less underwriting discounts and commissions.

Proceeds from the sale of common shares will provide AIG with a useful cash injection, perhaps offering new CEO Brian Duperreault some further options for growth and expansion.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
W.R. Berkley sets up Entertainment & Sports and Environmental units

W. R. Berkley Corporation today announced the formation of two independent operating units, Berkley Entertainment & Sports and Berkley Environmental,...