AIG Secures Approval for Everest Renewals Acquisition Across Six EU Nations Ahead of January 1 Deadline

AIG has announced that it has received the necessary approvals to move forward with the acquisition of Everest Group’s renewals in several European countries, including Germany, France, Italy, the Netherlands, Spain, and Ireland.

This significant deal, valued at $2 billion, is part of AIG’s acquisition of Everest’s retail commercial insurance renewal rights, which was initially disclosed in October. Starting January 1, 2026, the renewals in these six nations will transition to AIG’s capacity, as detailed in AIG’s October announcement.

AIG confirmed that it received approval to proceed with the transaction in the EU-listed countries on December 12. “We purchased the renewal rights for approximately $300 million, with a potential downward adjustment of up to $70 million, depending on how much of the portfolio is renewed with AIG,” stated AIG’s Chairman & CEO, Peter Zaffino, during an analysts’ call discussing Q3 2025 results on November 5.

According to Zaffino, the portfolio is well-diversified across various geographies and business classes. The largest segment of the in-force eligible gross premiums written is in the United States, totaling $1.3 billion, followed by Europe at $400 million, the UK at $150 million, Australia at $80 million, and Singapore at $70 million.

“Approximately 60% of this portfolio will renew in the first half of 2026. Canada, Latin America, and certain lines of business, including aviation, surety, and wholesale, are specifically excluded,” he added.

Paride Della Rosa, CEO of AIG EMEA, emphasized the company’s commitment to making the renewals as seamless as possible. “We are fully committed to partnering with brokers and clients to renew all of Everest’s expiring capacity and terms,” he mentioned in a memo to UK brokers regarding the European renewal announcement.

AIG clarified that exposure to all liabilities will remain with Everest, which will continue to manage claims related to its policies. Zaffino expressed optimism about the renewal rights transactions, stating, “We expect these transactions to drive incremental growth in our general insurance portfolio, and we will be able to write these policies within our existing balance sheet with no incremental capital required.”

This acquisition is expected to enhance AIG’s upper middle and large account retail insurance book, allowing for premium growth without incurring significant costs. “The actions we have taken over the past several years have positioned us with the balance sheet and liquidity to pursue compelling opportunities when they materialize,” Zaffino noted during the Q3 earnings call.

In addition to this acquisition, AIG also announced plans to become a minority equity investor in Convex Group Ltd., a Bermuda-based specialty insurer and reinsurer. This deal, expected to close in the first half of 2026, will see private equity firm Onex Corp. acquire a 63% equity stake in Convex for approximately $3.8 billion, while AIG will secure a 35% equity stake for around $2.1 billion.

“We announced strategic investments with Convex Group, Onex Corp., and a transaction with Everest Group. These will strengthen AIG’s long-term value and strategic positioning, and we expect they will be earnings, EPS, and ROE accretive one year after closing,” Zaffino concluded in the Q3 earnings call with equity analysts.

Topics
Mergers & Acquisitions
Europe
AIG

AIG has announced that it has received the necessary approvals to move forward with the acquisition of Everest Group’s renewals in several European countries, including Germany, France, Italy, the Netherlands, Spain, and Ireland.

This significant deal, valued at $2 billion, is part of AIG’s acquisition of Everest’s retail commercial insurance renewal rights, which was initially disclosed in October. Starting January 1, 2026, the renewals in these six nations will transition to AIG’s capacity, as detailed in AIG’s October announcement.

AIG confirmed that it received approval to proceed with the transaction in the EU-listed countries on December 12. “We purchased the renewal rights for approximately $300 million, with a potential downward adjustment of up to $70 million, depending on how much of the portfolio is renewed with AIG,” stated AIG’s Chairman & CEO, Peter Zaffino, during an analysts’ call discussing Q3 2025 results on November 5.

According to Zaffino, the portfolio is well-diversified across various geographies and business classes. The largest segment of the in-force eligible gross premiums written is in the United States, totaling $1.3 billion, followed by Europe at $400 million, the UK at $150 million, Australia at $80 million, and Singapore at $70 million.

“Approximately 60% of this portfolio will renew in the first half of 2026. Canada, Latin America, and certain lines of business, including aviation, surety, and wholesale, are specifically excluded,” he added.

Paride Della Rosa, CEO of AIG EMEA, emphasized the company’s commitment to making the renewals as seamless as possible. “We are fully committed to partnering with brokers and clients to renew all of Everest’s expiring capacity and terms,” he mentioned in a memo to UK brokers regarding the European renewal announcement.

AIG clarified that exposure to all liabilities will remain with Everest, which will continue to manage claims related to its policies. Zaffino expressed optimism about the renewal rights transactions, stating, “We expect these transactions to drive incremental growth in our general insurance portfolio, and we will be able to write these policies within our existing balance sheet with no incremental capital required.”

This acquisition is expected to enhance AIG’s upper middle and large account retail insurance book, allowing for premium growth without incurring significant costs. “The actions we have taken over the past several years have positioned us with the balance sheet and liquidity to pursue compelling opportunities when they materialize,” Zaffino noted during the Q3 earnings call.

In addition to this acquisition, AIG also announced plans to become a minority equity investor in Convex Group Ltd., a Bermuda-based specialty insurer and reinsurer. This deal, expected to close in the first half of 2026, will see private equity firm Onex Corp. acquire a 63% equity stake in Convex for approximately $3.8 billion, while AIG will secure a 35% equity stake for around $2.1 billion.

“We announced strategic investments with Convex Group, Onex Corp., and a transaction with Everest Group. These will strengthen AIG’s long-term value and strategic positioning, and we expect they will be earnings, EPS, and ROE accretive one year after closing,” Zaffino concluded in the Q3 earnings call with equity analysts.

Topics
Mergers & Acquisitions
Europe
AIG