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Leading global insurer AIG announced a $5.6 billion deal Monday to purchase Validus Holdings, expanding its portfolio of insurance services.
American International Group, Inc. will acquire all outstanding common shares of Validus, a leading provider of reinsurance, primary insurance, and asset management services, the companies announced.
AIG said in addition to those services, the deal will allow it to add ‘complementary capabilities in the US crop and excess and surplus (E&S) markets.’
Validus shareholders will receive $68.00 per share.
‘Validus is an excellent strategic fit for AIG, bringing new businesses and capabilities to our General Insurance operation,’ AIG chief Brian Duperreault said. 
‘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.’
The company said the deal, expected to close in mid-2018, also will help AIG deliver profitable growth.
During the 2008 global financial crisis, AIG was rescued in a government bailout because of its close links with other key financial institutions.
The government saved AIG with a controversial $182 billion bailout that was later repaid in full by the insurer. Once the world’s largest insurer, AIG was teetering on the verge of collapse under tens of billions of dollars of souring, unhedged derivatives contracts in September 2008.
The US Treasury sold its final shares in December 2012.
In the wake of the announcement, S&P Global Ratings said the deal would not have an impact on AIG group’s ‘BBB+’ debt grade.
‘We don’t expect that AIG’s acquisition of Validus will reduce the group’s very strong capitalization levels,’ S&P said in a statement.
The ratings agency affirmed the ‘BBB+’ ratings on Validus but revised the outlook to negative ‘to align it with our negative outlook on AIG.’ 
S&P said it views Validus ‘as a strategically important entity within the AIG group because, among other things, it constitutes expansion into new business platforms,’ but even so was unlikely to upgrade the debt rating of the expanded group in the next two years.