Shares of American International Group Inc (NYSE:AIG) ended Thursday session in green amid volatile trading. The shares closed up +0.90 points or 1.55% at $58.99 with 6.62 million shares getting traded. Post opening the session at $58.24, the shares hit an intraday low of $58.17 and an intraday high of $59.04 and the price vacillated in this range throughout the day. The company has a market cap of $63.43 billion and the numbers of outstanding shares have been calculated to be 1.08 billion shares.
American International Group Inc (AIG) on September 16, 2016 announced that it has entered into an agreement to sell its interest in Ascot Underwriting Holdings Ltd. (AUHL) and related syndicate-funding subsidiary Ascot Corporate Name Ltd. (ACNL) (together Ascot) to Canada Pension Plan Investment Board (CPPIB), a professional investment management organization that invests the assets of the Canada Pension Plan. The transaction is subject to regulatory approvals.
Total consideration for the deal is $1.1 billion inclusive of CPPIB’s recapitalization of Syndicate 1414’s Funds at Lloyd’s (FAL) capital requirements. AIG will receive approximately $240 million in net cash proceeds from the transaction after the FAL recapitalization and release of the AIG-guaranteed Letter of Credit currently supporting the syndicate’s FAL. Proceeds reflect AIG’s 20 percent stake in AUHL and ownership of ACNL.
Ascot and AIG founded the managing agency and the syndicate in 2001. As a global specialty insurance underwriter, Ascot focuses on property insurance, marine insurance, and reinsurance.
AIG will maintain its strategic partnership with Ascot Underwriting Bermuda Ltd. (AUB). While AUB is a wholly-owned subsidiary of AUHL and part of the sale to CPPIB, AUB will continue to serve as the managing general agent for AIG-Ascot Re, which writes assumed treaty reinsurance business on behalf of AIG’s wholly owned subsidiary American International Reinsurance Company Ltd. (AIRCO) in Bermuda.
As part of the agreement, AIG, CPPIB, and Ascot intend to expand a collective commercial relationship in Bermuda, and for AIG to be a preferred reinsurer to Syndicate 1414.
“This deal successfully repositions our strategic focus and underwriting capacity to our relationship with Ascot in Bermuda, while monetizing our position in the syndicate at an attractive value and retaining exposure to the syndicate as a reinsurer,” said Robert Schimek, Chief Executive Officer, Commercial Insurance. “We are also pleased to start a collaborative relationship with CPPIB who we see as an ideal partner for Ascot’s outstanding management team.”
Shares of Spirit Realty Capital, Inc (New) (NYSE:SRC) ended Thursday session in green amid volatile trading. The shares closed up +0.37 points or 2.77% at $13.75 with 6.61 million shares getting traded. Post opening the session at $13.48, the shares hit an intraday low of $13.48 and an intraday high of $13.80 and the price vacillated in this range throughout the day. The company has a market cap of $6.42 billion and the numbers of outstanding shares have been calculated to be 479.68 million shares.
Spirit Realty Capital, Inc (New) (SRC) announced that its Board of Directors has declared a quarterly cash dividend of $0.175 per common share, representing an annualized rate of $0.70 per common share. Shareholders of record as of September 30, 2016, will receive the $0.175 cash dividend on October 14, 2016.