NEW YORK--(BUSINESS WIRE)--Sep. 16, 2016--
American International Group, Inc. (NYSE:AIG) today announced that it
has entered into an agreement to sell its interest in Ascot Underwriting
Holdings Ltd. (AUHL) and related syndicate-funding subsidiary Ascot
Corporate Name Ltd. (ACNL) (together Ascot) to Canada Pension Plan
Investment Board (CPPIB), a professional investment management
organization that invests the assets of the Canada Pension Plan. The
transaction is subject to regulatory approvals.
Total consideration for the deal is $1.1 billion inclusive of CPPIB’s
recapitalization of Syndicate 1414’s Funds at Lloyd’s (FAL) capital
requirements. AIG will receive approximately $240 million in net cash
proceeds from the transaction after the FAL recapitalization and release
of the AIG-guaranteed Letter of Credit currently supporting the
syndicate’s FAL. Proceeds reflect AIG’s 20 percent stake in AUHL and
ownership of ACNL.
Ascot and AIG founded the managing agency and the syndicate in 2001. As
a global specialty insurance underwriter, Ascot focuses on property
insurance, marine insurance, and reinsurance.
AIG will maintain its strategic partnership with Ascot Underwriting
Bermuda Ltd. (AUB). While AUB is a wholly-owned subsidiary of AUHL and
part of the sale to CPPIB, AUB will continue to serve as the managing
general agent for AIG-Ascot Re, which writes assumed treaty reinsurance
business on behalf of AIG’s wholly owned subsidiary American
International Reinsurance Company Ltd. (AIRCO) in Bermuda.
As part of the agreement, AIG, CPPIB, and Ascot intend to expand a
collective commercial relationship in Bermuda, and for AIG to be a
preferred reinsurer to Syndicate 1414.
“This deal successfully repositions our strategic focus and underwriting
capacity to our relationship with Ascot in Bermuda, while monetizing our
position in the syndicate at an attractive value and retaining exposure
to the syndicate as a reinsurer,” said Robert Schimek, Chief Executive
Officer, Commercial Insurance. “We are also pleased to start a
collaborative relationship with CPPIB who we see as an ideal partner for
Ascot’s outstanding management team.”
Andrew Brooks, Chief Executive Officer of Ascot Underwriting Ltd. said,
“Ascot and AIG have enjoyed a strong and profitable relationship for
over 15 years and we value the support that we have received from AIG
throughout that time. We are pleased to be continuing our relationship
through Ascot Underwriting Bermuda and look forward to building on the
success of that platform.”
Evercore served as financial advisor to AIG, and Freshfields Bruckhaus
Deringer served as legal advisor to AIG on the transaction. Macquarie
Capital served as financial advisor to Ascot Underwriting Holdings
Canada Pension Plan Investment Board is a professional investment
management organization that invests the assets of the Canada Pension
Plan (CPP) not currently needed to pay benefits on behalf of 19 million
contributors and beneficiaries. As of June 30, 2016, the CPP Fund totaled C$287.3
This press release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements, including the closing of the transaction
described herein, are not historical facts but instead represent only
AIG’s belief regarding future events, many of which, by their nature,
are inherently uncertain and outside AIG’s control. Except for AIG’s
ongoing obligation to disclose material information as required by
federal securities laws, AIG is not under any obligation (and expressly
disclaims any obligation) to update or alter any forward-looking
statements, whether written or oral, that may be made from time to time,
whether as a result of new information, future events or otherwise.
Factors that could cause AIG’s actual results to differ, possibly
materially, from any forward-looking statements include the factors set
forth in AIG’s filings with the United States Securities and Exchange
# # #
American International Group, Inc. (AIG) is a leading global insurance
organization. Founded in 1919, today we provide a wide range of property
casualty insurance, life insurance, retirement products, mortgage
insurance and other financial services to customers in more than 100
countries and jurisdictions. Our diverse offerings include products and
services that help businesses and individuals protect their assets,
manage risks and provide for retirement security. AIG common stock is
listed on the New York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
| YouTube: www.youtube.com/aig
| Twitter: @AIGinsurance | LinkedIn: http://www.linkedin.com/company/aig.
These references with additional information about AIG have been
provided as a convenience, and the information contained on such
websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by
independent third parties. Certain property-casualty coverages may be
provided by a surplus lines insurer. Surplus lines insurers do not
generally participate in state guaranty funds, and insureds are
therefore not protected by such funds.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160916005392/en/
Source: American International Group, Inc.
Matt Gallagher, 212-458-3247