Ren Re completes $3.5bn purchase of Validus Re from AIG

RenaissanceRe today announced that it has completed its acquisition of American International’s treaty reinsurance business for more than $3.5 billion. 

RenRe and AIG announced the sale of Validus Re, which includes Validus Reinsurance and its consolidated subsidiaries, AlphaCat Managers and all renewal rights to the Assumed Reinsurance Treaty Unit of Talbot, on May 22.  

AIG received total consideration of $3.3 billion in cash, including a pre-closing dividend, and approximately $275 million in RenaissanceRe common shares.

As disclosed in May 2023, AIG will retain Talbot Underwriting and Western World, which the company purchased as part of its acquisition of Validus Holdings, Ltd. in 2018.

Kevin J. O’Donnell, president and chief executive officer of RenaissanceRe, said: “We are delighted to complete the Validus Re acquisition today. We are bringing together two of the best reinsurance underwriters and look forward to the risk expertise and scale that our combined company will bring to our customers.” 

He added: “This transaction accelerates our strategy, expands our ability to match efficient capital to desirable risk, and positively impacts each of our three drivers of profit – underwriting, fee, and investment income. 

“We are pleased to extend our partnership with AIG and have strong conviction that this transaction will create both immediate and long-term value for our shareholders.”

Sidley Austin LLP and Oxbow Partners acted as legal counsel and integration consultant, respectively, for RenaissanceRe.

Evercore Group L.L.C. and J.P. Morgan Securities LLC acted as financial advisors, and Wachtell, Lipton, Rosen & Katz and Debevoise & Plimpton LLP acted as legal counsel for AIG.