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AIG closes on $2.2B sale of Fortitude stake

|About: The Carlyle Group Inc. (CG)|By: , SA News Editor

Carlyle Group (NASDAQ:CG) and T&D Holdings (OTC:TDHOF) complete their acquisition of a 76.6% interest in Fortitude Group Holdings from American International Group (NYSE:AIG).

At closing, AIG received ~$2.2B in sale proceeds, including the purchase price of $1.8B along with additional consideration paid in accordance with the terms of the purchase agreement.

After the transaction, Carlyle and a newly created Carlyle-managed fund hold 71.5% of Fortitude, which includes the 19.9% stake acquired by Carlyle in November 2018, T&D holds 25% and AIG holds 3.5%.

Fortitude Re is the reinsurer of ~$30B of reserves from AIG’s Legacy Life and Retirement Run-Off Lines and ~$4B of reserves from AIG’s Legacy General Insurance Run-Off Lines related to business written by multiple wholly-owned AIG subsidiaries.

AIG rises 1.6% in premarket trading of 2,316 shares.

Previously: AIG sells majority stake in Fortitude Re to Carlyle, T&D Holdings for $1.8B (Nov. 25, 2019)