After successfully selling mortgage insurer United Guaranty to Arch Capital Group Limited last year, American International Group (AIG) will sell its shares from the sale, according to Reinsurance News.
“With this transaction, AIG has taken another step in simplifying our organization to become a leaner, more focused insurance company committed to our vision of being our clients’ most valued insurer,” AIG President and CEO Peter D. Hancock said of the sale to Arch. “We believe UGC and the outstanding professionals who work there have gained a strong partner in Arch to continue to grow and facilitate home ownership for consumers and provide valuable and necessary protection to mortgage lenders.”
AIG gained the $600 million worth of shares from the acquisition – Series D Convertible Preferred Shares which will be converted to Common Shares before being sold.
AIG affiliates will sell up to 6,381,410 common shares, wherein underwriters can buy up to an “additional 957,210 common shares at the public offering price, less underwriting discounts and commissions.”
AIG is a global leader in life and mortgage insurance and other products. United Guaranty is the top primary mortgage insurance company in the nation, with $184.6 billion in insurance force as of Sept. 30 last year.
AIG completes UGC sale on last day of 2016