(Bloomberg) -- American International Group Inc. agreed to sell mortgage insurer United Guaranty Corp. to Arch Capital Group Ltd. as Chief Executive Officer Peter Hancock works to simplify his company and free up capital to return to shareholders.
The deal is valued at $3.4 billion including $2.2 billion in cash and the rest in Arch securities, New York-based AIG said Monday in a statement. AIG will retain a portion of mortgage-insurance business originated from 2014 through 2016 through a previously disclosed intra-company risk transfer deal.
“This transaction maximizes UGC’s value while further streamlining our organization,” Hancock said in the statement. “The deal also maintains our affiliation with the mortgage-insurance market and its leading company.”
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
