Validus results hit by underwriting fall
Validus reports 2017 net loss
Validus bought up by AIG
Brian Duperreault, president and chief executive officer of AIG, and Ed Noonan, chairman and chief executive officer of Validus, have stressed the benefits of AIG’s purchase of Validus.
In a statement they pointed out that for AIG the deal was a great step forward in its strategy to grow the company to be a global, profitable leader in the industry, adding that the transaction will bring new businesses and capabilities to AIG’s General Insurance franchise, while expanding its bench of talent and deepening its underwriting expertise.
Turning to Validus, Duperreault and Noonan said that the transaction was a source of pride and shows the value the founders and management team have built since 2005. “Our employees will benefit from the growth opportunities that will come from access to AIG’s global scale and balance sheet. And together, we will be able to serve our brokers and clients in new and exciting ways.”
They also stressed the part played by Bermuda, which they said was at the centre of it all. “Once again, it has proven itself to be a key leader of the global insurance and reinsurance industry. As two individuals with deep personal and professional roots planted in Bermuda, we could not be more pleased.”
Duperreault and Noonan added that because the two companies are “highly complementary”, after closing the deal they expect there to be minimal integration and that Validus will operate largely as it does today but within the general insurance segment at AIG. “Clients and brokers can expect the same responsive, solutions-driven approach to which they are accustomed. And, at AIG, we look forward to being more closely connected to Bermuda once again through Validus’ strong presence here.”
Duperreault and Noonan concluded by stating: “As much as we value its industry heritage, it is Bermuda’s innovative insurance culture that will make it a winning marketplace as the needs of clients and brokers evolve. In 2017, the former Hamilton USA, then part of Bermuda-based Hamilton Insurance Group, became part of AIG as the foundation for Blackboard Insurance, a technology-driven subsidiary that seeks to transform how commercial insurance is written and delivered through a diverse workforce that, armed with technology, relishes the question, “why do we do it this way, how can we do it better?” Meanwhile, Validus’ proprietary cat modelling abilities are another example of how technology can deliver sustainable competitive advantage.
“AIG and Validus have known and admired each other for some time and have tremendous respect for each other’s work. We are confident that Validus will thrive within AIG, and that AIG will thrive in Bermuda.”
AIG, Validus, M&A, Brian Duperreault, Ed Noonan, Acquisition, Insurance, Reinsurance, Bermuda, North America