Issues

The AlphaCat asset management franchise appears to have played a major role in AIG's decision to bid for Validus, and if the deal closes it will be the first time that a major global insurer has owned an alternative asset management platform of scale.

With Validus set to come under AIG ownership, the spotlight falls on the dwindling number of Bermudian (re)insurers still in the public markets.

One way to think about AIG's $5.6bn proposed acquisition of Validus is as an elegant example of the fact that the structure of management incentives will shape corporate strategy - for better or for worse.

Bermuda-based carriers' share prices jumped upon the news of AIG's $5.56bn takeover bid for Validus yesterday, buoyed not only by the prospect of further M&A on the island but also Brian Duperreault's positive outlook on the sector.

The AIG-Validus deal puts an end to the Bermudian class of 2005.

Two of insurance's most experienced dealmakers, AIG CEO Brian Duperreault and Validus CEO Ed Noonan, struck the first and last deals of their respective tenures yesterday, as the global insurance giant made good on its growth pronouncements.

Validus looks set to secure a premium takeout multiple relative to other recent Bermudian sellers after AIG agreed to pay $5.56bn, or 1.58x fully diluted book value, to buy the business.

2017 is a year the management board at AmTrust will be keen to put behind it.

The top 10 insurance-linked securities (ILS) managers grew their assets under management (AuM) to $62bn at January 2018, according to figures from sister publication Trading Risk's latest biannual survey of the sector.

The P&C (re)insurance industry is set to disclose another set of dented earnings for the final three months of a year blemished by historic levels of catastrophe activity.

Revisions in the US tax code designed to improve America's international competitiveness are expected to provide material gains for domestic insurers but may not deliver the revenue boost for the Treasury that lawmakers envisioned.

Bermuda-based reinsurers that do business with US affiliates began examining their options well before the ink dried last month on a reform bill that took aim at tax arbitrage strategies which have helped make the island an industry hub.