AIG to Sell Validus Re to RenaissanceRe
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Divestiture of AIG’s Treaty Reinsurance Business Continues Progress on AIG’s Portfolio Repositioning, Reduces Volatility in Underwriting Results, Accelerates Focus on Insurance Business,
Increases Liquidity and Unlocks Significant Capital
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Transaction Includes Validus Re, AlphaCat and the Talbot Treaty Reinsurance Business;
Transaction Excludes Talbot Underwriting Ltd. ,Western World andCrop Risk Services
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RenaissanceRe 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’ 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 toRenaissanceRe , which together, as ofDecember 31, 2022 , was over$1.5 Billion ; Total Transaction Value to AIG is Expected to Exceed$4.5 Billion
- AIG 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
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Following the Closing, AIG Expects to Make Significant Investments in RenaissanceRe’s
DaVinci Reinsurance and Fontana Re Managed Funds,Strengthening Partnership between Companies
AIG will retain Talbot Underwriting and
The 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’s
“We 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
“At the same time, our investment in RenaissanceRe’s common shares demonstrates our commitment to the strong relationship we have with
About AIG
Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. 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.
AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of
Forward Looking Statements
Certain 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’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside the relevant party’s 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.
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Source:
RenaissanceRe Holdings Ltd. Advances Strategy with $2.985 Billion Acquisition of Validus Re
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