AIG secures major sale

Major insurer sees transaction as a step forward with managing its legacy liabilities

AIG secures major sale

Insurance News

By Lyle Adriano

The Carlyle Group and T&D Holdings have completed their acquisition of 76.6% interest in Fortitude Group Holdings from American International Group (AIG).

The transaction was first announced last November. Fortitude Group Holdings’ reinsurance subsidiary Fortitude Re is now being positioned as a major provider of retroactive reinsurance and legacy run-off management solutions, armed with the expertise of Carlyle and T&D.

The acquisition closed following receipt of required regulatory approvals and customary closing conditions. AIG received about US$2.2 billion in sale proceeds, including the purchase price of US$1.8 billion, upon closure of the deal.

Following the move, Carlyle and the fund it manages and created with T&D hold 71.5% ownership interest in Fortitude Re. T&D holds 25%, and AIG maintains 3.5%.

“Closing this transaction marks the completion of a significant milestone in AIG’s strategy to efficiently manage our legacy liabilities while strengthening our balance sheet and upholding our commitments to regulators and policyholders,” said AIG CEO Brian Duperreault.

Duperreault added that Fortitude Re will remain “an important partner for AIG.”

“Despite increasing uncertainty due to the COVID-19 outbreak around the globe, the successful completion of this transaction is significantly meaningful for T&D and a strategically important step towards continued growth of Fortitude Re and our future business collaboration,” stated T&D representative director and president Hirohisa Uehara.

Uehara noted that T&D will focus on supporting Fortitude Re by providing the reinsurance unit with expertise in life insurance business in Japan, creating synergies with T&D’s domestic life insurance business while diversifying the company’s portfolio.

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