News & Insights

Cases & Deals

June 3, 2020

T&D Holdings and The Carlyle Group Complete their Acquisition of a Majority Interest in Fortitude Re from AIG for Approximately $2.2 Billion

American International Group, Inc. (NYSE: AIG), The Carlyle Group (NASDAQ: CG) and T&D Holdings (TYO:8795) announced on June 2, 2020 that a Carlyle-managed fund and T&D have completed their acquisition from AIG a 76.6 percent ownership interest in Fortitude Group Holdings, whose group companies operate as Fortitude Re, for approximately $2.2 billion including $1.8 billion in cash along with $383 million in additional purchase consideration, as no pre-closing distributions were made from Fortitude Re. Fortitude Re reinsures approximately $31 billion of liabilities of AIG’s Legacy Life and Retirement Run-Off Lines and approximately $4 billion of liabilities of AIG’s Legacy General Insurance Run-Off Lines.

Ownership interests in Fortitude Re post-closing will include Carlyle and its fund investors at 71.5 percent (including the 19.9 percent stake previously acquired by Carlyle in November 2018), T&D at 25 percent and AIG at 3.5 percent. Fortitude will become an affiliated company of T&D and will no longer be a part of AIG’s consolidated group. T&D was represented by King & Spalding.