American International Group, Inc. (AIG) has launched a new reinsurance syndicate at Lloyd’s and increased its tender offer for outstanding notes to US$1.16 billion.
On December 13, 2024, AIG revealed the launch of Syndicate 2478 at Lloyd’s, a move set to bolster its reinsurance capabilities. The syndicate, managed by Talbot Underwriting Limited, will begin underwriting on January 1, 2025.
For the 2025 Year of Account, Syndicate 2478 has been approved with a stamp capacity of US$715 million. The initiative is supported by third-party capital from funds managed by Blackstone, utilizing Lloyd’s London Bridge 2 PCC structure. Blackstone will also serve as the investment manager for the syndicate’s assets.
The premiums underwritten by Syndicate 2478 will draw from AIG’s global property and casualty businesses. AIG describes this partnership as leveraging its strategic relationships with Blackstone and Lloyd’s, aiming to access the Lloyd’s platform for tailored and innovative transactions.
Charlie Fry, AIG’s executive vice president for Reinsurance and Risk Capital Optimization, stated that this launch underscores the strength of AIG’s underwriting portfolio and its attractiveness to third-party capital providers.
“AIG is one of the largest and most sophisticated buyers of reinsurance globally and this multi-year agreement with Blackstone highlights the attractiveness of our underwriting performance and expertise. It is also a tremendous opportunity to access the Lloyd’s platform for bespoke and innovative transactions,” said Fry.
In a separate announcement, AIG reported the results of its tender offers for certain outstanding notes.
Initially capped at US$750 million, the company increased the maximum purchase consideration to US$1.16 billion.
The offers, which expired on December 12, 2024, resulted in US$2.02 billion in validly tendered notes, with US$1.13 billion accepted for purchase across various series. Notes with Acceptance Priority Levels 7, 9, and 11-12 were excluded, and validly tendered notes in these categories will be returned to holders. The settlement dates are December 16, 2024, for the Initial Settlement and December 18, 2024, for the Guaranteed Delivery Settlement.
The tender offers included cash payments of the applicable total consideration for each US$1,000 principal amount of notes, along with accrued coupon payments. Interest ceased to accrue on December 16, 2024, for accepted notes.
AIG partnered with BofA Securities, Inc. and Citigroup Global Markets Inc. as lead dealer managers for the offers.
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