AIG to Acquire Validus in $5.56 Billion Transaction

January 23, 2018

Willkie advises Perella Weinberg as financial advisor to AIG in this transaction.

On January 22, leading global insurer American International Group, Inc. (NYSE: AIG) announced it has entered into an agreement to acquire Validus Holdings, Ltd. (NYSE: VR), a leading provider of reinsurance, primary insurance, and asset management services for $5.56 billion in cash. The acquisition brings a diverse and complementary set of attractive franchises across specialized products and regions, enhancing AIG’s General Insurance business, and adding a leading reinsurance platform, an insurance-linked securities asset manager, a meaningful presence at Lloyd’s and complementary capabilities in the U.S. crop and excess and surplus (E&S) markets. Validus also adds to AIG’s talent and underwriting capabilities with the addition of experienced management and underwriting teams.

Validus Holdings, Ltd. is a leading global provider of reinsurance, insurance, and asset management services, delivering its premier solutions through four diversified yet complementary operating companies: Validus Reinsurance, Ltd., Talbot Underwriting Ltd., Western World Insurance Group, Inc., and AlphaCat Managers, Ltd. Validus brings complementary capabilities to AIG, enhancing long-term growth opportunities for both companies and providing diversification benefits which will provide significant additional capital efficiencies over time.

The transaction is expected to close in mid-2018. Willkie represented Perella Weinberg as financial advisor to AIG in this transaction. The Willkie deal team is led by partners Gregory Astrachan and Laura Delanoy and included associate Jason Koenig.