BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.
To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.
To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.
(Reuters) — American International Group Inc. on Monday said it would buy Validus Holdings Ltd. for $5.56 billion in cash to strengthen its reinsurance business, the company's first deal under CEO Brian Duperreault.
Mr. Duperreault, who replaced Peter Hancock last year, is seen as a turnaround expert and has promised to streamline AIG's operations and improve its financial performance.
AIG's $68-per-share offer represents a 45.5% premium to Validus' Friday close.
Validus, through its subsidiaries, offers crop insurance and property/catastrophe reinsurance. Its Lloyd's of London syndicate business focuses on specialty insurance.
Reinsurers play a little-known but 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.
The Validus deal is expected to close in mid-2018 and immediately add to AIG's earnings per share and return on equity.
Citigroup Global Markets Inc., Perella Weinberg Partners L.P. and Debevoise & Plimpton L.L.P. advised AIG. Validus was advised by J.P. Morgan Securities L.L.C. and Skadden, Arps, Slate, Meagher & Flom L.L.P.
Shares of Bermuda-based Validus were trading close to the offer price before the bell. AIG shares were down 2.3% in premarket trading.
American International Group Inc. President and CEO Brian Duperreault promised more action to improve the insurer’s performance as AIG reported another big quarterly loss and added significant funds to reserves for 2016 business.