AIG in its $4.5 billion sale of its Validus Re business to RenaissanceRe Holdings Ltd.
On May 22, 2023, American International Group, Inc. (NYSE: AIG) announced the sale of its Validus Re business to RenaissanceRe in a $4.5 billion transaction. In addition to cash consideration, AIG will receive $250 million of RenaissanceRe shares and expects to make substantial investments in RenaissanceRe managed funds following the closing. The sale is another milestone in AIG’s strategy, under the direction of Chairman and CEO Peter Zaffino, to simplify its business model, reduce volatility, unlock capital and drive the company’s capital management strategy to generate value for shareholders. Following a successful multi-year effort to transform Validus Re, AIG has strategically executed the creatively structured divestiture in a highly favorable market environment, transacting at a significant premium to recent reinsurance transaction multiples, while ensuring that it will continue to participate in the growth of the reinsurance market by enhancing its partnership with RenaissanceRe.
Wachtell, Lipton, Rosen & Katz is serving as legal advisor to AIG.