Carlyle Group and T&D acquire majority share in Fortitude Re from AIG

Written by Adam Cadle

03/06/2020

The Carlyle Group and T&D Holdings have completed their acquisition of a 76.6% interest in Fortitude Group Holdings, whose group companies include Fortitude Re, from American International Group.

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 $2.2bn in sale proceeds, including the purchase price of $1.8bn along with additional consideration paid in accordance with the terms of the purchase agreement.

Fortitude Re is the reinsurer of approximately $30bn of reserves from AIG’s legacy life and retirement run-off lines and approximately $4bn of reserves from AIG’s legacy general insurance run-off lines related to business written by multiple wholly-owned AIG subsidiaries.

AIG’s CEO Brian Duperreault 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.”

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