AIG to acquire VALIDUS for USD 5.56 billion in cash

American International Group (AIG) announced it will acquire all the outstanding common shares of VALIDUS Holdings for an aggregate transaction value of USD 5.56 billion, in cash.

"The transaction enhances AIG's General Insurance business, adding a leading reinsurance platform (VALIDUS Re), an insurance-linked securities asset manager (AlphaCat), a meaningful presence at Lloyd's (TALBOT) and complementary capabilities in the U.S. crop and excess and surplus (E&S) markets (WESTERN WORLD)," AIG announced in a statement.

Holders of VALIDUS common shares will receive cash consideration of USD 68.00 per share, for an aggregate transaction value of USD 5.56 billion, funded by cash on hand

The deal has been unanimously recommended by the boards of directors of both companies, and is expected to close in mid-2018, subject to regulatory approvals.

"VALIDUS is an excellent strategic fit for AIG, bringing new businesses and capabilities to our General Insurance operation, expanding the bench of our management team and deepening our underwriting expertise," said Brian DUPERREAULT, President and Chief Executive Officer of AIG.

"With our global scale and the strength of our balance sheet, I am confident that VALIDUS will thrive within AIG and strengthen our ability to deliver profitable growth for our shareholders as we strategically position AIG for the future."

Ed NOONAN, VALIDUS' Chairman and Chief Executive Officer, said, "We believe this transaction offers compelling value for our shareholders and reflects the strength of the business we've built together with our talented global team. Joining AIG and becoming part of a larger, more diversified organization immediately opens new opportunities for our people and our franchise. VALIDUS will be able to serve clients and brokers in new and exciting ways, which will enhance our ability to grow profitably."

Peter ZAFFINO, AIG's Chief Executive Officer, General Insurance, said, "I have worked with and admired VALIDUS since its formation and have the utmost respect for what the management team has achieved. They have built a business that is highly compatible with AIG's General Insurance business. Brokers and customers of both companies will benefit from this acquisition, and I look forward to all that we will be able to accomplish by bringing VALIDUS into AIG."

Citigroup Global Markets Inc., Perella Weinberg Partners LP and Debevoise & Plimpton LLP advised AIG on the transaction.

VALIDUS was advised by J.P. Morgan Securities LLC and Skadden, Arps, Slate, Meagher & Flom LLP.

Related articles

TALANX reconfirmed its FY2018 outlook for the Group's net income

Hannover-based TALANX Group announced its Q1 GWP was up to EUR 10.6 billion, 8.3% up y-o-y, while the Group net income dropped by 8.4%, to EUR 218 million "mainly as a result of the one-off effect of the US tax reform as well as the higher share of profits attributable to minorities".

2018-05-17

ALLIANZ 1Q results are on track to meet FY 2018 targets

German insurance group ALLIANZ announced its 1Q 2018 operating profit was down 6.0% to EUR 2.8 billion. "The main drivers for the decrease were EUR 142 million currency translations and EUR 148 million benefit in the prior year related to our corporate pension administration".

2018-05-17

CROATIA Osiguranje, 1Q2018: net profit up by 50% y-o-y

Adris group's insurance arm, CROATIA Osiguranje, posted a net profit of HRK 101.5 million (~EUR 13.7 million) in 1Q2018, up 50% y-o-y. Its consolidated GWP went up by 7% y-o-y, to HRK 1.10 billion (~EUR 148.6 million).

2018-05-10

SWISS Re reports Q1: GWP up by 13.1%

SWISS Re announced Q1 result heavily impacted by changes in US GAAP accounting due to which the group's net income fell from USD 656 million to USD 457 million.

2018-05-10

ZURICH Q1 result: GWP in P&C rose 5%

ZURICH 1Q2018 results show the development of all business lines. P&C GWP rose by 5% in USD terms. Overall the Group saw rate increases of around 2%, said the insurer's official statement.

2018-05-10

MUNICH Re Q1 profit jumped by 48% y-o-y

1Q2018 results of MUNICH Re show an achieved profit of EUR 827 million, more than 48% higher y-o-y (vs EUR 557 million) thanks to lower expenses and strong underwriting performance.

2018-05-10

Aon's net profit doubled during Q1

Aon Group reported Q1 2018 net profit of USD 610 million, compared with USD 305 million a year before, according to a statement published on the company's website.

2018-05-10

ON THE MOVE

TOP EVENT

FIAR 2018 - Motor Insurance Conference (I & II): with the right use of technoloogy, clients' expectations and MTPL insurer's profitability may go hand in hand

The first and second parts of the Motor Insurance Conference taking place at FIAR 2018 focused on the new MTPL Law in Romania and the way it changed the market after almost 1 year of implementation, as well as the consequences of the new legislative framework and the operational challenges this brings, but also the most suitable solutions for balancing regulation, insurers' appetites and customer expectations on the MTPL market.

16.05.2018

FIAR 2018: Brokers' Conference (II): digitization and technology are needed for efficient operations, but will not replace the human touch in consultancy

The second part of the Brokers' Conference taking place at FIAR 2018 analyzed the impact of European Union's legislative overhaul - IDD & GDPR -, also bringing into debate study cases and real-life scenarios of what the brokers face on the market, and, last but not least, trying to see whether digitization and InsurTech could truly lead to disintermediation.


15.05.2018

Brokers' Conference (I): Until 1 July, when we will see the final version of the IDD, we cannot say for certain if we are ready and how ready we actually are

The second day of debates at FIAR 2018 started with The Brokers' Conference, the event dedicated to the mediation market in Romania and in the CEE region. The first part of the conference focused on a market overview and also analyzed the challenges of the IDD implementation, as well as the potential impact of IPID for MTPL and PAD.

15.05.2018

INSURANCE IN A DIGITAL WORLD Conference: capacity, consistency and culture are the three key success factors in the digital transformation of insurers

The INSURANCE IN A DIGITAL WORLD Conference, taking place at FIAR 2018, brought into debate the impact of digitization on the insurance industry. The first part of the conference focused on risks & opportunities of digitalization for both industry and consumers, as well as case studies and best practices: BigData & IoT, BlockChain, Peer-to-Peer, and AI.

14.05.2018

Insurance Market Trends Conference (II): GDPR and IDD, European regulations affecting all business lines, as well as the compliance with the Solvency II framework, are the main challenges ahead for the Romanian market

During the second part of the Insurance Market Trends Conference, taking place at FIAR 2018, the debates focused on the current situation in Romania and the sustainable development for a growing and stable insurance market, as well as the challenges and opportunities for the local insurers.


14.05.2018

See all