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Everest To Sell Some Renewal Rights To AIG Everest Group, Ltd. announced that it has entered into definitive agreements to sell the renewal rights for its Global Retail Commercial Insurance business to American International Group, Inc. . A spokesperson said, “The transactions sharpen Everest’s focus on its core global Reinsurance business as well as its Global Wholesale and Specialty Insurance businesses, and positions Everest for strong performance across market cycles. “As part of these transactions, AIG will obtain all the rights to renew Everest’s U.S., U.K., European, and Asia Pacific Commercial Retail businesses. The renewal rights of these businesses total an estimated $2 billion of aggregate gross premiums written. The transactions will result in meaningful total value to Everest including significant capital which will be released over time.” “Today’s strategic action results in a more focused, higher-performing Everest,” said Jim Williamson, Everest President and Chief Executive Officer. “The transactions offer clear opportunity to unlock long-term value for both Everest and AIG. Going forward, Everest will be optimally positioned to respond to evolving market needs while building on our track record of sustainable financial returns over the long term.” A spokesperson added, “As part of these transactions, Everest has introduced a new operating structure for its insurance division focused on its Global Wholesale and Specialty Insurance businesses. It aligns Everest’s expertise with the evolving needs of the market and includes Everest Global Markets and Everest Evolution™, as well as Underwriting Programs, Credit and Political Risk, Surety, and Accident & Health business lines. Jason Keen has been appointed CEO of Global Wholesale and Specialty Insurance and will lead efforts to further strengthen Everest’s position in the excess and surplus market.” Williamson concluded, “The dynamic specialty market is full of opportunity. With Jason’s leadership and expertise, Everest Insurance® is poised to capture new growth opportunities, while delivering tailored solutions and exceptional value to the market.” Completion of the transactions will be subject to certain regulatory requirements. Ardea Partners LP served as exclusive financial advisor to Everest, and Debevoise & Plimpton LLP served as the Company’s legal advisor. Evercore served as financial advisor to AIG, and Willkie Farr & Gallagher LLP was AIG’s legal advisor.
