American International Group (AIG) has agreed to acquire Bermuda-based Validus Holdings, a provider of reinsurance, primary insurance, and asset management services, in an all-cash deal valued at $5.56bn.

The deal includes acquisition of Validus’ reinsurance platform Validus Re, insurance-linked securities asset manager AlphaCat, Lloyd’s of London underwriter operating as Talbot in addition to Western World, a US specialty property and casualty underwriter.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

As per terms of the deal, for each share of Validus common shares its shareholders will receive cash consideration of $68.

AIG president and CEO Brian Duperreault said: “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.

“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.”

Validus chairman and CEO Ed Noonan stated: “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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

AIG said that the acquisition of Validus will be immediately accretive to its earnings per share and return on equity (ROE).

Subject to approval by Validus shareholders and other customary closing conditions, including regulatory approvals, the deal is likely to be closed by mid-2018.