The Alberta Investment Management Corp. is investing $673.5 million to indirectly acquire shares of global insurance company Allied World Assurance Co. Holdings.
AIMCo signed a letter of commitment on the investment with Fairfax Financial Holdings Ltd. to acquire approximately 10 per cent of issued and outstanding shares of the company. Fairfax acquired Allied World in December 2016, and the Ontario Municipal Employees Retirement System acquired about a 21 per cent stake in January 2017.
Read: OMERS to acquire 21% of Allied World
“On behalf of our clients, AIMCo is very pleased to make this investment in Allied World,” said Kevin Uebelein, chief executive officer of AIMCo, in a press release. “We look forward to working with the team of Allied World, and to be joining Fairfax, OMERS and the other co-investors in this significant transaction.”
AIMCo was attracted to the investment because it provides an opportunity to gain direct exposure to a global provider of property, casualty and specialty insurance along with reinsurance, according to the release.
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“We are thrilled that AIMCo has chosen to partner with us,” said Prem Watsa, chairman and chief executive officer at Fairfax. “AIMCo has an excellent investing reputation and this is a relationship that we expect to continue to build over time.”