Validus

Global insurance giant AIG is set to invest up to $500 million into third-party capital and joint-venture vehicles run by RenaissanceRe’s Capital Partners unit, as part of the arrangement that sees the company selling the Validus reinsurance and AlphaCat ILS arms to RenaissanceRe.

RenaissanceRe is intending to leverage its third-party reinsurance capital and insurance-linked securities (ILS) operations to extract greater efficiencies out of the Validus Re reinsurance book, as it assumes it after the recently announced acquisition, with more investor capital set to be raised to support these efforts.

As part of the recently announced arrangement that will see RenaissanceRe acquiring AIG’s Validus reinsurance units and its AlphaCat Managers ILS operation, AIG has also taken an option to make what is termed a “substantial” investment into two of the RenaissanceRe Capital Partners vehicles.

RenaissanceRe, the Bermuda based reinsurer and third-party capital manager, is seeking further scale in all its endeavours, with the acquisition of the Validus reinsurance business and Talbot reinsurance book from global player AIG, while the deal includes buying the AlphaCat Managers ILS fund management unit as well.

Peter Zaffino, the CEO of insurance giant AIG, sees the current hardening reinsurance market environment as a “solid growth opportunity” for the firm’s Bermuda-headquartered reinsurer Validus Re.

American International Group (AIG) has continued to evolve its reinsurance business, both on an outwards and inwards basis, as the insurance giant secured new reinsurance protection at the middle of the year, while its ILS specialist unit AlphaCat has helped it lower its exposure to Florida property catastrophe risks, according to President and CEO Peter […]

Rating agency Standard & Poor’s has upgraded AIG’s reinsurance unit Validus Re to ‘A+’ from ‘A’, saying that the Validus operation is now considered “core” to AIG’s operations and adding that the access to third-party capital markets the parent gets through AlphaCat Managers is another benefit.

Insurer American International Group (AIG) is likely to continue to acquire increasing amounts of reinsurance protection, as it utilises reinsurance capital as a lever for performance improvements across its book and is already approaching reinsurer markets about new opportunities in the second-half of this year.

American International Group, Inc. (AIG), one of the world’s largest insurers, will now also benefit from a specialist reinsurance arm and its own insurance-linked securities (ILS) fund manager, as it closes on the Validus acquisition so adds the AlphaCat Managers ILS unit to its operations.

The acquisition of Bermudian reinsurance group Validus Holdings, Ltd. by primary insurance giant American International Group, Inc. (AIG) will provide the AlphaCat Managers ILS investment team with access to a much deeper and broader universe of insurance risk, the unit believes.