The European Commission (EC) has approved the sale of American International Group’s (AIG) treaty reinsurance business to RenaissanceRe Holdings (RenRe).
In an update, the regulatory body said: “The Commission concluded that the proposed acquisition would raise no competition concerns, given the limited horizontal overlaps and vertical relationships resulting from the proposed transaction.”
According to the EC, whose approval was provided under the merger regulation of the European Union, the AIG-RenRe deal was examined using the simplified merger review procedure.
The regulator assesses mergers and acquisitions to prevent market concentrations that significantly impede effective competition in the European Economic Area or any substantial part of it.
First announced in May, the US$3 billion swoop spans Validus Reinsurance and its consolidated subsidiaries, AlphaCat Managers and its managed funds, and all renewal rights to the treaty reinsurance business of Talbot Underwriting. RenRe is acquiring sole control of the abovementioned firms.
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