Business News: DSA Re, PEAK6, CoreLogic
AIG and The Carlyle Group Announce Strategic Partnership with DSA Re
American International Group and The Carlyle Group announced a strategic partnership to build DSA Re into a standalone provider of reinsurance, claims handling and run-off management solutions for long-dated, complex risks to the global insurance industry.
DSA Re currently reinsures $36 billion of AIG’s Legacy Life and Annuity and General Insurance liabilities. DSA Re’s diversified risk portfolio, strong claims operation, and efficient administration capabilities provide the foundation for a platform that can be scaled over time. Utilizing Carlyle’s expertise in separating and standing up companies, AIG and Carlyle plan to build DSA Re into a platform that complements DSA Re’s financial strength with its strategically differentiated capabilities.
As part of the transaction, Carlyle will acquire a 19.9 percent stake in DSA Re and enter into a strategic asset management relationship whereby DSA Re and AIG will, in aggregate, allocate $6 billion of assets into various Carlyle managed strategies across corporate private equity, real assets and private credit.
The transaction is expected to close in approximately 60 days, subject to required regulatory approvals and other customary closing conditions.
AIG established DSA Re in February 2018 as a Bermuda-based, composite reinsurer of its Legacy insurance portfolio, consolidating its non-core insurance lines under a specialized team with expertise in run-off, while continuing to ensure it meets its obligations to policyholders.
Goldman Sachs & Co. LLC was the financial advisor and Sidley Austin LLP was the legal advisor to AIG for this minority interest equity sale.
Citi was the financial advisor and Debevoise & Plimpton LLP was the legal advisor to The Carlyle Group.
PEAK6 Acquires National Flood Services from Aon
PEAK6 Investments L.P., announced that it has acquired National Flood Services (NFS) from Aon plc, a global professional services firm providing a broad range of risk, retirement and health solutions.
NFS is the largest U.S. provider of technology-enabled risk & business process services in flood insurance. The company’s 550 colleagues support nearly 87,000 active flood agents, who manage approximately 1.8 million flood policies in force and $1.5 billion of National Flood Insurance Program premium annually.
As part of the agreement, Aon is retaining the private flood insurance business, currently known as NFS Edge, a Managing General Agent (MGA) and the provider of EZ Flood. NFS Edge aligns with Aon’s focus on classic insurance product development as well as sales and marketing through MGAs and will continue to have a strong contractual relationship with National Flood Services.
Latham & Watkins LLP acted as legal advisor and Waller Helms Advisors as financial advisor to PEAK6. Sidley Austin LLP acted as legal advisor and XMS Capital Partners as financial advisor to Aon.
CoreLogic Launches Hazard HQ To Emphasize Timely Natural Hazard Risk Insights
CoreLogic, a global property information, analytics and data-enabled solutions provider, launched a new publicly-accessible risk information resource center, Hazard HQ. The information hub will offer individuals, media and companies high-level analyses and up-to-date data insights on the immediate risks natural catastrophes pose to properties across the country.
As comprehensive risk assessment needs increase alongside growing economic losses from natural catastrophes, Hazard HQ offers a high-level risk perspective for individuals and companies who wish to understand how hazards like earthquakes, floods, hurricanes, severe convective storms, wildfires, wind and volcanic activity can impact their regions. The ongoing California wildfires are the subject of the latest Hazard HQ risk summary, and will remain a focus as the fires continue to move through the state.
Check out the latest Hazard HQ risk analysis on the California wildfires here, and please visit the Hazard HQ home page at www.hazardhq.com for up-to-date natural hazard risk information as the 2018 hurricane season develops and as other natural hazards occur throughout the year.