AIG to buy Hamilton USA
Rating agency AM Best has placed the financial strength rating of A- (Excellent) of Hamilton Re, Hamilton Specialty Insurance Company and Hamilton Insurance Company under review with developing implications.
The company said that the action comes in the wake of the resignation of Hamilton Insurance Group chairman and CEO Brian Duperreault, who left the company to become the new president, CEO and director of American International Group, (AIG).
AM Best added that the rating action also reflected AIG’s tentative agreement to acquire all of the outstanding shares of Hamilton US Holdings (HUSA), a wholly owned subsidiary of Hamilton Insurance Group, for approximately $110 million; the transfer of Attune ownership from HUSA to Hamilton Insurance Group; as well as other provisions, as outlined in a memorandum of understanding negotiated between AIG, Hamilton, and Two Sigma Insurance Quantified.
According to the rating agency the under review with developing implications status reflects the complex nature of the transaction, with potential financial and operational benefits and disadvantages. Hamilton will remain under review pending AM Best’s evaluation of its final revised business plan and full analysis of the transaction.
AM Best, Hamilton Re, Hamilton Insurance Company, Brian Duperreault, Bermuda, AIG