AIG’s Validus Deal Signals CEO Reversing Course on Retrenchment

Jan. 22, 2018, 8:19 PM UTC

American International Group Inc. is getting bigger again.

Eight months after Chief Executive Officer Brian Duperreault took over and began to undo his predecessor’s retrenchment strategy, the company announced a $5.56 billion, all-cash deal to purchase Bermuda reinsurer Validus Holdings Ltd., its largest standalone acquisition in 17 years.

In the nine years before Duperreault became CEO, AIG sold assets totaling roughly $100 billion to help repay a government bailout and restructure operations. The Validus takeover gives Duperreault’s firm a reinsurer, a crop-insurance business and a Lloyd’s of London operation. AIG was in talks last year to buy Voya Financial Inc., ...

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