American International Group said it would buy reinsurer Validus Holdings for US$5.56 billion in cash, snapping a long period of retrenchment for AIG as new Chief Executive Brian Duperreault plots an expansionist path.
Duperreault initiated the deal for Bermuda-based Validus, which comes four months after US regulators said that AIG, which has radically shrunk after its near-death experience during the financial crisis, was no longer “too big to fail.”
Bermuda’s insurance industry is familiar turf for Duperreault, who was born there and founded and ran the Bermuda-based Hamilton Insurance Group before heading to AIG.
The deal marks AIG’s reentry into the Lloyds of London insurance market, strengthens its reinsurance operations and adds new areas, including crop insurance, at a time when AIG, like rivals, is facing stiff pricing pressure.
“I particularly like the reinsurance business as additive to what we do. There are a lot pieces to this company that fit us like a glove,” Duperreault said on a conference call with analysts.
Reinsurers play an important role in the financial industry by assuming risks that are either too large or too unpredictable for their insurance clients to take on their own.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Vista and Blackstone in Advanced Talks to Acquire Smartsheet in $8 Billion Deal
Sep 17, 2024 by
CPI
Ursula von der Leyen Appoints Spanish Minister to Key Role in European Commission
Sep 17, 2024 by
CPI
US Judge Dismisses Antitrust Lawsuit Against Bayer, Corteva, and Syngenta
Sep 17, 2024 by
CPI
YouTube CEO Argues Google’s Innovation, Not Monopoly, Drove Ad Tech Success
Sep 16, 2024 by
CPI
Samsung, Xiaomi Among Smartphone Brands Allegedly Involved in eCommerce Collusion In India
Sep 16, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
Francisco Javier Núñez Melgoza
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
Julio Garcia
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
Alejandra Palacios Prieto
The Cost of Making COFECE Disappear
Sep 3, 2024 by
Mateo Fernández