AIG Announces Pricing of the Sale of Common Shares of Arch Capital Group Ltd.

Insurance Business Weekly

By a News Reporter-Staff News Editor at Insurance Business Weekly -- American International Group, Inc. (NYSE: AIG) announced that it has priced the sale through an underwritten public offering of 6,381,410 common shares of Arch Capital Group Ltd. issued upon conversion of 638,141 Convertible Preferred Shares of Arch received by AIG in connection with the sale of United Guaranty Corporation to Arch in 2016. Closing of the offering is scheduled for June 14, 2017, and is subject to customary closing conditions.

AIG will receive gross proceeds of approximately $590 million, based upon a price of $92.50 per share. In connection with the underwritten public offering, AIG has granted the underwriters a 30-day option to purchase an additional 957,210 common shares of Arch issuable upon conversion of 95,721 additional Convertible Preferred Shares held by AIG. Should the underwriters exercise their option in full, AIG would receive additional proceeds of approximately $89 million and would continue to own 542,420 Convertible Preferred Shares. AIG's remaining stake is subject to a lock-up that will expire on January 15, 2018.

Arch has previously filed a shelf registration statement with the SEC for the underwritten offering to which this communication relates. Investors should read the accompanying prospectus, the preliminary prospectus supplement and other documents Arch has filed with the SEC for more complete information about Arch and this offering. These documents may be obtained for free by visiting the SEC's website at www.sec.gov.

Alternatively, copies of the preliminary prospectus supplement, the final prospectus supplement, when available, and accompanying base prospectus relating to the offering may be obtained from: Barclays Capital Inc. c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, [email protected], (888) 603-5847 or Wells Fargo Securities, LLC, Attention: Equity Syndicate Department, 375 Park Avenue, New York, New York, 10152, at (800) 326-5897 or email a request to [email protected].

Keywords for this news article include: Financial Companies, Property and Casualty Insurance Companies.