The approval is based on the European Union (EU) Merger Regulation and evaluated under the simplified merger review process, EC noted in a press statement.
AIG’s treaty reinsurance business comprises Validus Reinsurance, AlphaCat Managers and Talbot Underwriting, which will now be divested.
Validus Reinsurance is a reinsurance group that delivers treaty reinsurance while Talbot Underwriting is a specialty reinsurance and insurance provider.
AlphaCat Managers is an investment adviser that focuses on offering various insurance-associated securities funds and vehicles and also delivers reinsurance services.
The EC further added that the proposed deal would not create any competition concerns due to the reduced horizontal overlaps and vertical relationships ensuing the merger.
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In May 2023, RenaissanceRe signed a definitive deal to take over the treaty reinsurance business from AIG for a cash-stock deal totalling to nearly $2.98bn.
Subject to necessary conditions and approvals, the acquisition is anticipated to conclude in the fourth quarter of 2023.
At the closing of the deal, AIG will hold 95% of the development on net reserves and will subsequently invest in the Capital Partners business of RenaissanceRe.
RenaissanceRe delivers reinsurance and insurance offerings with a focus on property, casualty and speciality reinsurance, as well as specialised insurance solutions.