(Reuters) - The Canada Pension Plan Investment Board said it would buy Ascot, American International Group’s (AIG.N) Lloyd’s of London platform, in a deal valued at about $1.1 billion, as it pushes to expand its global presence.
The deal, which includes the acquisition of Ascot Underwriting Ltd and Ascot Corporate Name Ltd, will provide “durable cash yield and an attractive scalable investment for the fund”, CPPIB said on Friday.
The $1.1 billion includes CPPIB’s recapitalization of Ascot Syndicate 1414’s capital requirements, AIG said.
Each member on the Lloyd’s of London insurance platform is required to provide capital as security to support its total Lloyd’s underwriting business.
Ascot will continue to operate as a standalone, independent business governed by its own board of directors and will retain its entire senior management team, led by Andrew Brooks.
Reporting by Arathy S Nair and Richa Naidu in Bengaluru; Editing by Maju Samuel