The Canada Pension Plan Investment Board has signed an agreement with American International Group to acquire 100 per cent of Ascot Underwriting Ltd., AIG’s Lloyd’s platform, for US$1.1 billion.
The global specialty insurance underwriter, which is based in London, England, operates in multiple lines of business, including property, energy, cargo, terrorism and political risk, marine hull and liability, casualty, renewable energy, excess of loss, reinsurance, and specie and fine art.
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“This acquisition represents another important step in our strategy to achieve scale in targeted sub-sectors within financial services through long-term platform investments,” said Ryan Selwood, managing director, head of direct private equity at CPPIB, in a news release. “We have studied the global property and casualty insurance sector for several years and specifically identified Ascot as an ideal platform through which CPPIB can access diverse global insurance premiums at scale.”
Upon closing of the acquisition, Ascot will continue to operate as a standalone, independent business governed by its own board of directors and will retain its entire senior management team and approximately 194 employees.