NEW YORK CITY (dpa-AFX) - American International Group, Inc. (AIG) announced it has entered into an agreement to sell its interest in Ascot Underwriting Holdings Ltd. and related syndicate-funding subsidiary Ascot Corporate Name Ltd. to Canada Pension Plan Investment Board, a professional investment management organization that invests the assets of the Canada Pension Plan. Total consideration for the deal is $1.1 billion. AIG will receive approximately $240 million in net cash proceeds from the transaction. Proceeds reflect AIG's 20 percent stake in Ascot Underwriting Holdings and ownership of Ascot Corporate Name Ltd.
AIG said the company will maintain strategic partnership with Ascot Underwriting Bermuda Ltd. AIG, Canada Pension Plan Investment Board, and Ascot intend to expand a collective commercial relationship in Bermuda, and for AIG to be a preferred reinsurer to Syndicate 1414.
Copyright RTT News/dpa-AFX