The deal is the first with Brian Duperreault at the helm

American International Group (AIG) has announced that it will buy Bermudian reinsurance Validus Holdings for $5.56bn, according to reports.

The deal is set to complete in mid-2018.

This will be AIG’s first deal under new president and chief executive Brian Duperreault, who was previously chief executive of Bermuda-based Hamilton Group.

Dupperreault described Validus as an ”excellent strategic fit for AIG” and said the firm would bring “new businesses and capabilities to our General Insurance operation, expanding the bench of our management team and deepening our underwriting expertise”. 

He added: “With our global scale and the strength of our balance sheet, I am confident that Validus will thrive within AIG and strengthen our ability to deliver profitable growth for our shareholders as we strategically position AIG for the future.”

Validus chairman and chief executive Ed Noonan said, “We believe this transaction offers compelling value for our shareholders and reflects the strength of the business we’ve built together with our talented global team. Joining AIG and becoming part of a larger, more diversified organization immediately opens new opportunities for our people and our franchise. Validus will be able to serve clients and brokers in new and exciting ways, which will enhance our ability to grow profitably.”