A.M. Best Comments on Credit Ratings of American International Group, Inc. Following Announced Transaction
January 22 2018 - 3:45PM
Business Wire
A.M. Best has commented that the Credit Ratings (ratings)
of American International Group, Inc. (AIG) (headquartered
in New York, NY) [NYSE: AIG] and its subsidiaries remain unchanged
following the Jan. 22, 2018 announcement that AIG has signed a
definitive agreement to acquire all outstanding common shares of
Validus Holdings, Ltd. (Validus) [NYSE: VR].
Under the terms of the agreement, holders of Validus common
shares will receive cash consideration of $68.00 per share, for an
aggregate transaction value of $5.56 billion, funded by cash on
hand. The transaction affords AIG the benefits of business
diversification and a seasoned management team, while being
immediately accretive to earnings and maintaining AIG’s financial
leverage within acceptable levels for its ratings.
Given the lack of business overlap and general modest size of
Validus, this transaction should not result in material execution
risk or distraction to AIG as it works to improve the performance
of its property/casualty business.
The transaction is expected to close mid-2018, subject to
approval by Validus shareholders and other customary closing
conditions, including regulatory approvals in relevant
jurisdictions and the expiration or termination of the applicable
waiting period under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976.
This press release relates to Credit Ratings that have been
published on A.M. Best’s website. For all rating information
relating to the release and pertinent disclosures, including
details of the office responsible for issuing each of the
individual ratings referenced in this release, please see A.M.
Best’s Recent Rating Activity web page. For
additional information regarding the use and limitations of Credit
Rating opinions, please view Understanding Best’s Credit
Ratings. For information on the proper media use of Best’s
Credit Ratings and A.M. Best press releases, please view
Guide for Media - Proper Use of Best’s Credit Ratings and A.M.
Best Rating Action Press Releases.
A.M. Best is the world’s oldest and most authoritative
insurance rating and information source. For more information,
visit www.ambest.com.
Copyright © 2018 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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version on businesswire.com: http://www.businesswire.com/news/home/20180122006496/en/
A.M. BestDarian Ryan, CPA, +1 908-439-2200, ext.
5449Senior Financial Analystdarian.ryan@ambest.comorMichael Lagomarsino,
CFA, FRM, +1 908-439-2200, ext. 5810Senior
Directormichael.lagomarsino@ambest.comorChristopher
Sharkey, +1 908-439-2200, ext. 5159Manager, Public
Relationschristopher.sharkey@ambest.comorJim Peavy,
+1 908-439-2200, ext. 5644Director, Public
Relationsjames.peavy@ambest.com
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