Morningstar - American International Group Inc. (AIG) AIG to Buy Validus for $5.6 Billion as Duperreault Opens Checkbook

Report

Morningstar

Brett Horn, CFA

EUR 101.80 For Business Accounts Only

AIG to Buy Validus for $5.6 Billion as Duperreault Opens Checkbook

Since his arrival, Brian Duperreault has been clear that mergers and acquisitions would be part of his plan in turning American International GroupÂ around, and the announcement that AIG will acquire Validus for $5.6 billion in cash provides the first glimpse of his strategy on this front. The price, which equates to 1.5 times book value, looks reasonable to us. Overall, weâ€™re mildly positive on this deal but not enough to change our $76 fair value estimate or no-moat rating.
Validusâ€™ business ha...

22/01/2018 13 EN

Underlying

American International Group Inc.

American International Group is a holding company. Through its subsidiaries, the company provides a range of property casualty insurance, life insurance, retirement solutions, and other financial services. The company's businesses include General Insurance, which provides insurance products and services for commercial and personal insurance customers; Life and Retirement, which brings together a portfolio of life insurance, retirement and institutional products provided through a multichannel distribution network; and Other Operations, which include Blackboard U.S. Holdings, Inc., a subsidiary focused on delivering commercial insurance solutions using digital technology, data analytics and automation.

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US0268747849 New York Stock Exchange United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

Brett Horn, CFA

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AIG to Buy Validus for $5.6 Billion as Duperreault Opens Checkbook

American International Group Inc: 1 director

Moody’s Ratings assigns Baa2 ratings to AIG’s senior notes

Vermilion Compass: Weekly Equity Strategy

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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