Insurer RenaissanceRe to buy AIG unit Validus Re in near $3 bln deal (updated)

RenaissanceRe Holdings

22/05/2023 21:54

(Adds details of deal throughout, shares in paragraph 3)
       May 22 (Reuters) - Insurer RenaissanceRe Holdings Ltd
 RNR.N  said on Monday it would buy AIG's  AIG.N  treaty
reinsurance business, which includes Validus Reinsurance Ltd and
its consolidated subsidiaries, in a deal valued at nearly $3
billion.
    The deal terms include about $2.74 billion in cash and $250
million of RenaissanceRe common shares, the companies said in
their statements.
    Shares of AIG were up marginally in extended trading. The
stock is down nearly 15% so far this year.
    The insurance sector continues to see dealmaking activities
as companies take advantage of defensive business models that do
better in times of economic uncertainty.
    The cash consideration is expected to be funded through
RenaissanceRe available funds and proceeds from the issuance of
common equity and debt.
        The companies expect the deal to close in the fourth
quarter of 2023.
        
  
        
  

 (Reporting by Manya Saini in Bengaluru; Editing by Shilpi
Majumdar)
 ((Manya.Saini@thomsonreuters.com;))