Insurance

AIG to sell 76.6% stake in Fortitude Re for $1.8 billion

Key Points
  • U.S. insurer AIG said it would sell a major portion of its stake in reinsurer Fortitude Re to buyout fund Carlyle Group and Japanese insurer T&D Holdings for about $1.8 billion.
  • Following the deal, AIG's stake in the company will drop to 3.5% from about 80%, while Carlyle's ownership in the company will rise to 71.5% from about 19.9%. T&D will have a 25% stake.
Pedestrians walk by the American International Group building.
Ramin Talaie | Bloomberg | Getty Images

U.S. insurer American International Group said on Monday it would sell a major portion of its stake in reinsurer Fortitude Re to buyout fund Carlyle Group and Japanese insurer T&D Holdings for about $1.8 billion.

Following the deal, AIG's stake in the company will drop to 3.5% from about 80%, while Carlyle's ownership in the company will rise to 71.5% from about 19.9%. T&D will have a 25% stake.

The transaction is expected to close in mid-2020.

Willkie Farr & Gallagher served as legal adviser to AIG.

Debevoise & Plimpton was Carlyle's legal adviser, while Oliver Wyman was its financial adviser.

Citi was T&D's financial adviser and Nishimura & Asahi, King & Spalding and Appleby were its legal advisers.

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