BestWeek: AIG Seeks to Expand Its General Insurance With Acquisition of Validus
January 30, 2018 by Best's News Service
OLDWICK, N.J. – American International Group Inc. said it will acquire reinsurer Validus Holdings Ltd. for $5.56 billion in an all-cash transaction. AIG President and Chief Executive Officer Brian Duperreault said the deal will give the group a leading reinsurance underwriter while enhancing its general insurance capability, according to BestWeek.
“The combined companies position AIG with the capital, cash flow and underwriting opportunities to deliver profitable growth,” said Duperreault. Strategically, he said the acquisition provides AIG a strong reinsurance operation, an immediate presence at Lloyd’s, additional specialty lines expertise and third-party capital skills through Validus’s AlphaCat unit.
Also featured in this week’s BestWeek:
— Lincoln Financial Group is acquiring Liberty Life Assurance Company of Boston in a $3.3 billion deal that will vault Lincoln into the large-case market, nearly double premiums and make it the largest disability insurer, group protection business President Richard “Dick” Mucci said during an investor call. Under terms of the deal with Liberty Mutual Insurance Group, Lincoln Financial will retain the groups benefit business and reinsure Liberty’s individual life and annuity business to Protective Life Insurance Co.
— Matt Mosher, executive vice president, A.M. Best, said new sources of capital have leveraged their flexibility and speed to provide risk solutions. Insurers must become more responsive to emerging risk needs or risk becoming less relevant. Mosher spoke with A.M.BestTV at the Joint Industry Forum 2018 in New York.
BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe, visit www.ambest.com/sales/BestWeek. Go to www.bestweek.com on your iPad or mobile device, click on the BestWeek edition.
Founded in 1899, A.M. Best Co. is the world’s oldest and most authoritative insurance rating and information source.
(By Rick Cornejo, managing editor, BestWeek: Rick.Cornejo@ambest.com)
BN-NJ-1-26-2018 1412 ET #