American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Merger or Acquisition (January 2018)
10 slides from American International Group, Inc. New's merger presentation, Jan 22, 2018
Slide 1: AIG Acquisition of Validus Holdings: A Step Forward in AIG's Profitable Growth Strategy
AIG Acquisition of Validus Holdings: A Step Forward in AIG’s Profitable Growth Strategy Investor Presentation January 22, 2018 Exhibit 99.1
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements Certain statements in this presentation may include projections, goals, assumptions and statements that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These projections, goals, assumptions
Slide 3: Validus – A Step Forward in AIG's Profitable Growth Strategy
Validus – A Step Forward in AIG’s Profitable Growth Strategy AIG Priorities Validus’ Core Strengths Balance & Diversification Products Geographies Client Segments Consistent source of global underwriting profits Limited overlap with AIG’s current portfolio Proven property and specialty reinsurer Att
Slide 4: Acquisition Provides a Diverse Set of Attractive Businesses
Source: Company filings. (1) GPW for 2017 is for the last twelve months as of September 30, 2017. (2) CRS acquisition closed in May 2017; assumes CRS GPW and business mix as of 2016. (3) AUM of $3.4B includes $3.2B of third party investment and $0.2B of related party investment as of 1/1/18. Acquisi
Slide 5: Enhanced Capabilities and Diversification within Commercial Insurance
Source: Company filings. Notes: (1) NPW for 2017 is for the last twelve months as of September 30, 2017. (2) LTM Q3’17 NPW pro forma for CRS acquisition assuming 2016 CRS NPW of $459mm. 2017 NPW(1)(2): $2.8B Commercial Insurance: 2017 NPW(1): $17.7B Enhanced Capabilities and Diversification within C
Slide 6: A Track Record of Underwriting Excellence
Source: Company filings. 126.9% Average: 84.3% Combined Ratio Combined Ratio (ex-CAT) Avg. (ex- CAT): 66.5% A Track Record of Underwriting Excellence Proven Management Team Culture of Underwriting Discipline and Strong Risk Management Superior Underwriting Performance P P
Slide 7: Transaction Overview
Transaction Overview AIG’s Unique Global Scale Provides Attractive Opportunities for Capital Efficiencies and Growth Transaction Acquisition of 100% of Validus Holdings, Ltd. (“Validus”) Value $68.00 per Validus share, or $5.56 billion transaction equity value Represents 46% premium to Validus’ clos
Slide 8: Pro Forma Capital Structure
Source: Company filings. Note: (1) Amounts shown prior to purchase accounting adjustments. (2) For AIG includes $836mm of hybrids and for Validus includes $539mm of junior subordinated debt. (3) Q3’17; does not include impact of tax reform. (4) Validus Shareholder’s Equity eliminated as part of the
Slide 9: Conclusion
Conclusion Validus – A Step Forward in AIG’s Profitable Growth Strategy Unlocking Growth Opportunities Validus’ highly complementary products will allow AIG to deliver more complete insurance solutions across the globe Combined capabilities will reinforce AIG’s position as a leader in the evolution
Slide 10: Non-GAAP Reconciliations
Non-GAAP Reconciliations Ratios: We, along with most property and casualty insurance companies, use the loss ratio, the expense ratio and the combined ratio as measures of underwriting performance. These ratios are relative measurements that describe, for every $100 of net premiums earned, the amoun
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