Fortitude Group Holdings launches as an
independent provider of run-off management solutions, backed by a
long-term shareholder base and strong capital position
The Carlyle Group (NASDAQ: CG) and T&D Holdings (TYO: 8795)
announced today that they have completed their acquisition of a
76.6% interest in Fortitude Group Holdings, whose group companies
include Fortitude Re, from American International Group, Inc.
(NYSE: AIG). The transaction, which was first announced in November
2019, closed following receipt of required regulatory approvals and
customary closing conditions. At closing, AIG received
approximately $2.2 billion in sale proceeds, including the purchase
price of $1.8 billion along with additional consideration paid in
accordance with the terms of the purchase agreement.
Fortitude Re is the reinsurer of approximately $30 billion of
reserves from AIG’s Legacy Life and Retirement Run-Off Lines and
approximately $4 billion of reserves from AIG’s Legacy General
Insurance Run-Off Lines related to business written by multiple
wholly-owned AIG subsidiaries.
Brian Duperreault, AIG’s Chief Executive Officer, said, “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. Fortitude Re will continue to be an
important partner for AIG, and I would like to thank colleagues
across AIG and everyone who has worked diligently towards today’s
announcement.”
Kewsong Lee, Carlyle’s Co-Chief Executive Officer, said, “Our
partnership with Fortitude Re represents an important strategic
investment that is focused on growing the platform to bring
innovative solutions to the insurance industry. Fortitude Re has
performed remarkably well in the current environment thanks to its
robust risk management, and we believe it is well-positioned to
deliver sustainable growth and profitability. We thank AIG and
T&D for their continued partnership and look forward to working
together to drive value for all of Fortitude Re’s
stakeholders.”
Hirohisa Uehara, T&D’s Representative Director and
President, said, “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. T&D will focus on
supporting Fortitude Re by contributing our expertise in life
insurance business in Japan to create synergies with our domestic
life insurance business as well as to diversify our business
portfolio. We look forward to working together with Fortitude Re,
AIG and Carlyle in the closed block business.”
Ownership interest in Fortitude Re post-closing remains as
outlined in the transaction announcement: Carlyle and a newly
created Carlyle-managed fund hold 71.5 percent, which includes the
19.9 percent stake acquired by Carlyle in November 2018, T&D
holds 25 percent and AIG holds 3.5 percent.
Additional information about Fortitude Re is available on its
website at https://www.fortitude-re.com/.
Additional information from AIG regarding the closing of the
transaction will be available in the Investors section of AIG’s
website, https://www.aig.com.
Additional information about T&D’s minority investment will
be available in disclosures T&D will file today with the Tokyo
Stock Exchange, which will also be posted on the “News Releases”
page of its website: https://www.td-holdings.co.jp/en/news/.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. AIG member companies provide a wide range
of property casualty insurance, life insurance, retirement
solutions, and other financial services to customers in more than
80 countries and jurisdictions. These diverse offerings include
products and services that help businesses and individuals protect
their assets, manage risks and provide for retirement security. AIG
common stock is listed on the New York Stock Exchange. Additional
information about AIG can be found at www.aig.com. References to
additional information about AIG have been provided as a
convenience, and the information contained on such website is not
incorporated by reference into this press release.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with
deep industry expertise that deploys private capital across four
business segments: Corporate Private Equity, Real Assets, Global
Credit and Investment Solutions. With $217 billion of assets under
management as of March 31, 2020, Carlyle’s purpose is to invest
wisely and create value on behalf of its investors, portfolio
companies and the communities in which we live and invest. The
Carlyle Group employs more than 1,775 people in 32 offices across
six continents. Further information is available at
www.carlyle.com. Follow The Carlyle Group on Twitter
@OneCarlyle.
About T&D Holdings
T&D Holdings, Inc. (T&D) is a publicly listed insurance
holdings company of T&D Insurance Group, which is comprised of
three core life insurers, Taiyo Life Insurance Company, Daido Life
Insurance Company, and T&D Financial Life Insurance Company.
Its headquarters is located in Tokyo, Japan. As of March 31, 2020,
total assets of T&D were JPY 16,520 billion. Daido Life has had
a long-term business partnership with AIG in Japan since 1971. In
June 2019, T&D established a wholly owned investment
subsidiary, T&D United Capital Co., Ltd. which is the entity
that has acquired a 25 percent ownership interest in Fortitude
Group Holdings directly, with an aim of accelerating the strategic
initiatives of T&D.
AIG Forward-Looking Statements
Certain statements in this press release may include
projections, goals, assumptions and statements that may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, and AIG may make related
oral forward-looking statements on or following the date hereof.
These projections, goals, assumptions and statements are not
historical facts but instead represent only AIG’s belief regarding
future events, many of which, by their nature, are inherently
uncertain and outside AIG’s control. These projections, goals,
assumptions and statements include statements preceded by, followed
by or including words such as “will,” “believe,” “anticipate,”
“expect,” “intend,” “plan,” “focused on achieving,” “view,”
“target,” “goal,” or “estimate.” It is possible that AIG’s actual
results and financial condition will differ, possibly materially,
from the results and financial condition indicated in these
projections, goals, assumptions and statements.
AIG is not under any obligation (and expressly disclaims any
obligation) to update or alter any projections, goals, assumptions
or other statements, whether written or oral, that may be made from
time to time, whether as a result of new information, future events
or otherwise.
The Carlyle Group Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements include, but are not limited to, statements related to
our expectations regarding the performance of our business, our
financial results, our liquidity and capital resources,
contingencies, our dividend policy, our expectations regarding the
impact of COVID-19, and other non-historical statements. You can
identify these forward-looking statements by the use of words such
as “outlook,” “believes,” “expects,” “potential,” “continues,”
“may,” “will,” “should,” “seeks,” “approximately,” “predicts,”
“intends,” “plans,” “estimates,” “anticipates” or the negative
version of these words or other comparable words. Such
forward-looking statements are subject to various risks,
uncertainties and assumptions. Accordingly, there are or will be
important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements
including, but not limited to, those described under the section
entitled “Risk Factors” in our Annual Report on Form 10-K for the
year ended December 31, 2019 filed with the SEC on February 12,
2020, as such factors may be updated from time to time in our
periodic filings with the SEC, which are accessible on the SEC’s
website at www.sec.gov. These factors should not be construed as
exhaustive and should be read in conjunction with the other
cautionary statements that are included in this release and in our
filings with the SEC. We undertake no obligation to publicly update
or review any forward-looking statements, whether as a result of
new information, future developments or otherwise, except as
required by applicable law.
This release does not constitute an offer for any Carlyle
fund.
T&D Holdings Forward-Looking Statements
Statements in this press release that relate to future results
and events are forward-looking statements based on T&D’s
current expectations. Actual results and events in future periods
may differ materially from those expressed or implied by these
forward-looking statements because of a number of risks,
uncertainties and other factors. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. Actual events may differ materially
from those indicated by such forward-looking statements. In
addition, the forward-looking statements represent T&D’s views
as of the date on which such statements were made. Subsequent
events and developments could cause T&D’s views to change.
Although T&D may elect to update these forward-looking
statements at some point in the future, it specifically disclaims
any obligation to do so. These forward-looking statements should
not be relied upon as representing T&D’s views as of any date
subsequent to the date hereof.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200602005837/en/
AIG Investors: Sabra Purtill; +1-212-770-7074;
sabra.purtill@aig.com Media: Daniel O’Donnell; +1-212-770-3141;
daniel.odonnell@aig.com
The Carlyle Group Investors: Daniel Harris; +1-212-813-4527;
daniel.harris@carlyle.com Media: Brittany Berliner;
+1-212-813-4839; brittany.berliner@carlyle.com
T&D Investors / Media: Daizo Hara; +81-3-3272-6103;
daizou.hara@td-holdings.co.jp
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