Tencent Securities, Beijing time 22 January evening - According to the US financial website MarketWatch, American International Group (NYSE: AIG) announced on Monday that it will acquire insurer Validus Holdings Ltd. (NYSE: VR) for $5.56 billion, paid entirely in cash.

        The deal offers Validus shareholders $68 per share, representing a substantial premium over the company's share price on Monday. AIG said in a statement that the acquisition will bring the group "a leading reinsurance underwriting business, a highly regarded Lloyd's business, an enhanced domestic US franchise, and an insurance-linked securities asset management business".

        The transaction has been approved by both companies' boards and is likely to close in mid-2018. AIG believes the deal will immediately lift its earnings per share and return on equity.

        At the end of 2017, the US government removed AIG from the list of "systemically important financial institutions", freeing up more operating capital for the group. Even so, the group's share price has fallen about 7.5% over the past 12 months.

Source: Tencent Securities 2018-01-23