AIG Reaches Deal to Sell Mortgage Insurance Unit
The United Guaranty sale to Arch Capital Group will create the world’s largest private mortgage insurer
American International Group Inc. said late Monday afternoon that it had reached an agreement to sell its mortgage insurance unit, United Guaranty Corp., to Bermuda-based Arch Capital Group for about $3.4 billion in cash and stock. The deal will create the world’s largest private mortgage insurer, while also advancing AIG’s goal of returning $25 billion to shareholders by the end of 2017.
Peter Hancock, AIG’s president and CEO, says the UGC sale represents “an important milestone” in a strategy the company committed to in March 2015. In his first shareholder letter as CEO, Hancock wrote of plans to “ ‘sculpt the future AIG’ into a more focused company,” with selective divestitures “an important part of reaching that goal. We restated that objective earlier this year when we made the IPO and eventual sale of UGC a key part of an updated overall strategic framework for AIG.” Headquartered in Greensboro, NC, UGC is a wholly owned subsidiary of AIG.
The transaction consists of $2.2 billion of cash, $250 million of newly issued Arch perpetual preferred stock and $975 million of newly issued Arch convertible non-voting common-equivalent preferred stock. Additionally, AIG will retain all mortgage insurance business ceded under an existing 50% quota share agreement between UGC and AIG subsidiaries for business originated from 2014 through 2016.
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Any NYC litigations or pleadings or any such like?
Thanks
The investors in their own fraud stole my social # 341-66-6698 by IDENTITY THEFT.
Moreover, I think PMI INSURANCE is the biggest scam ever.
They were insuring DERIVATIVES SWAPS FRAUD & that’s CRIMINAL EXTORTION.