NEW YORK and VERO BEACH, FL – December 20, 2018 – TowerBrook Capital Partners L.P. (“TowerBrook”), an international investment management firm, announced today that it has acquired Orchid Underwriters Agency, LLC (“Orchid”), a specialty underwriter of catastrophe exposed property insurance, from private equity firm Gryphon Investors. Financial terms were not disclosed.

Orchid President and CEO Brad Emmons will continue to lead Orchid, working alongside TowerBrook to continue the company’s growth. Gryphon will maintain a significant equity position in the company going forward.

Founded in 1998 and based in Vero Beach, FL, Orchid is a Managing General Agency (MGA)/Managing General Underwriter (MGU) providing specialty P&C insurance products to homeowners, high net worth individuals, and small businesses throughout the United States and the Caribbean. Orchid provides proprietary insurance solutions for “hard-to-place” risks to a growing, national network of retail agents and other strategic distribution partners. The company maintains several long-standing partnerships with high-quality insurance and reinsurance carriers that provide consistent and, in many cases, exclusive risk capacity to Orchid.

“We are thrilled to partner with TowerBrook and look forward to benefiting from its deep operational experience and strong network in the insurance industry,” said Brad Emmons, President and CEO of Orchid. “We have made significant strategic advancements under Gryphon’s ownership, and we now expect TowerBrook’s investment and guidance to further support future development as we continue to grow the platform organically through geographic and product expansion and pursue potential acquisitions. We look forward to the opportunities ahead as we work together to deliver greater value for our partner agents, carriers, and talented employees.”

TowerBrook’s investment in Orchid is the result of a targeted approach to the insurance services market focused on identifying attractive, resilient business models with consistent growth profiles. This acquisition aligns with TowerBrook’s investment strategy to back strong management teams operating in growth markets. TowerBrook will work with Orchid’s management team to develop organic and inorganic initiatives which further scale Orchid’s platform.

TowerBrook has a long history of investments in the insurance and financial services industry and a strong network in the sector, having partnered with companies such as Ironshore, Rewards Network, CapQuest, Hayfin, Fortiva, Validity Finance, and Ladder Capital.

On November 28, 2018, Altas Partners (“Altas”) completed a substantial equity investment in Hub International Limited (“Hub” or the “Company”), a leading full-service insurance brokerage. The transaction values Hub at more than $10 billion of total enterprise value. Altas will own its equity interest in Hub alongside Company management and employees, who are significant shareholders, and Hellman & Friedman, a leading private equity firm with offices in New York, San Francisco and London.

Hub has distinguished itself as the premier mid-market insurance brokerage, building on the company’s proven formula and enjoying a long and consistent track record of success in the North American marketplace. Hub remains focused on bringing global resources to the local market via its network of regional brokerage offices. The firm continues to prioritize arming its producers and support teams with market-leading products and resources, while cultivating a culture of specialization to provide the level of expertise that Hub’s customers demand. Hub is making significant investments in delivering best-in-class customer experiences, including technology that accelerates the pace at which Hub can complete transactions and provide cost-efficient solutions meeting the evolving needs of customers.

About Hub International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker providing property and casualty, life and health, employee benefits, investment and risk management products and services. With more than 11,000 employees in offices located throughout North America, Hub’s vast network of specialists provides peace of mind on what matters most by protecting clients through unrelenting advocacy and tailored insurance solutions. For more information, please visit https://www.hubinternational.com 

About Altas Partners 
Altas Partners is an investment firm with a long-term orientation focused on acquiring significant interests in high-quality, market-leading businesses in partnership with outstanding management teams. Key elements of the firm’s approach include responsible capital structures, active ownership through strategic and operational support and an emphasis on sustainable value creation. Altas invests on behalf of endowments, foundations, public pension funds and other institutional investors.

Fortitude Re Launches Brand

NEW YORK – American International Group, Inc. (NYSE: AIG) and The Carlyle Group (NASDAQ: CG) announced today that Carlyle completed its acquisition of a 19.9% stake in Fortitude Group Holdings, LLC, whose group companies operate as Fortitude Re (formerly DSA Re). The transaction was first announced on August 1, 2018, and closed following receipt of regulatory approvals and satisfaction of other customary closing conditions.

Fortitude Re’s new name represents the company’s focus on and expertise in managing long-dated, complex risks. Fortitude Re has also launched its website, http://www.Fortitude-re.com, which provides more information about the organization and its leadership.

James Bracken, Chief Executive Officer of Fortitude Re, said, “We are hard at work building Fortitude Re for long-term success. The closing of Carlyle’s investment and brand launch are two key milestones on that journey.”

Brian Schreiber, Managing Director and Co-Head of Carlyle Global Financial Services Partners, said, “We look forward to working with our partners at AIG and Fortitude Re to grow the business and extend Carlyle’s asset management platform.”

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About AIG

American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.

AIG Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements. These statements are not historical facts but instead represent only AIG’s belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG’s control. It is possible that actual results will differ, possibly materially, from the anticipated results indicated in these statements. Factors that could cause actual results to differ, possibly materially, from those in the forward-looking statements are discussed throughout AIG’s periodic filings with the SEC pursuant to the Securities Exchange Act of 1934.

The Carlyle Group Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, contingencies, our distribution policy, and other non-historical statements. Such forward-looking statements are subject to various risks, uncertainties, assumptions and other important factors that could cause actual outcomes or results to differ materially from those indicated in these statements including, but not limited to, those described under the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K filed with the SEC, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

Contacts:

AIG

Investors: Liz Werner; +1-212-770-7074; elizabeth.werner@aig.com
Media: Daniel O’Donnell; +1-212-770-3141; daniel.odonnell@aig.com

The Carlyle Group

Investors: Daniel Harris; +1-212-813-4527; daniel.harris@carlyle.com Media: Christa Zipf; +1-212-813-4578; christa.zipf@carlyle.com

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International private equity firm, Cinven, today announces that the Sixth Cinven Fund has entered into exclusive discussions to acquire AXA Life Europe (‘ALE’), a leading European life insurance company, for a consideration of €925 million.

ALE primarily manages guaranteed, unit-linked life insurance products (known as ‘Variable Annuities’) for its customer base across Germany, the UK, France, Spain, Italy and Portugal. ALE manages c.248,000 policies, c.€8 billion of assets and has c.€5 billion of reserves of which c.70% is related to German policies. It has been closed to new business since 2017. Furthermore, ALE is a reinsurer of AXA’s Japanese variable annuity portfolio.

ALE is headquartered in Dublin (Ireland), one of the largest cross-border life assurance centres in Europe and is regulated by the Central Bank of Ireland.

Building on Cinven’s expertise in the European life insurance sector, Cinven’s Financial Services team believes that ALE represents an attractive investment opportunity with significant value creation potential due to:

• A fragmented market: the European Variable Annuity and life insurance market remains fragmented and represents a compelling consolidation opportunity for ALE, particularly in Ireland and the Isle of Man. Cinven’s strategy for ALE builds on the strategies being executed by its Financial Services team in Germany, through its investment in Viridium, and in Italy, through its investment in Eurovita;
• M&A opportunities: a number of European insurers are planning to dispose of their existing guaranteed back-book portfolios which have become strategically non-core to them, creating an attractive M&A pipeline in the Irish life insurance market as well as the opportunity for ALE to become a consolidator of Variable Annuity back-book portfolios in Europe;
• The scope for operational improvements: as a non-core disposal from the AXA Group, given the primary nature of the transaction, there is also scope to optimise ALE’s operations;
• Asset management optimisation: ALE’s asset management and hedging strategies will be further optimised while maintaining strong Solvency II ratios following the carve-out; and
• Industry-leading management team: Cinven will be partnering with the incumbent, industry-leading management team led by CEO, Eoin Lynam.

Furthermore, customers will benefit from enhanced risk management and underlying asset quality.

This transaction represents the 12th investment by the Sixth Cinven Fund and follows the Sixth Cinven Fund’s agreement to acquire Viridium Group and to provide it with equity funding to acquire Generali Leben, creating a leading German life insurance business with c.5 million policies and c.€55 billion of assets under management.

Caspar Berendsen, Partner at Cinven, commented:

“Over time we have managed to build a strong relationship with ALE and its management team and believe the opportunity for ALE is compelling. Cinven’s acquisition of ALE is a ‘repeat play’ of the consolidation platforms we have created though Guardian Financial Services in the UK, Eurovita in Italy, and Viridium in Germany. Cinven’s investment strategy in this case focuses on the consolidation of closed life funds with Variable Annuity offerings, primarily across Ireland and the Isle of Man. We have ambitious plans for this business and look forward to working alongside Eoin and his team to create value over the coming years.”

Andrea Bertolini, Principal at Cinven, added:

“Cinven continues to make investments in the closed life fund segment, bringing operational and financial excellence to this niche area. Cinven has fast become the leading private equity investor in this segment through investments in the UK, Germany and Italy. We will work in close partnership with the excellent management team to ensure no service interruptions for policy holders and in addition, identify value-accretive potential acquisition targets, creating benefits for all stakeholders of the businesses.”

Eoin Lynam, CEO of ALE, said:

“We have followed Cinven’s investments across various geographies in the European life insurance markets and it’s clear that they have a fantastic grasp of the opportunities available to ALE. We are closely aligned in terms of the future strategy for the business and share a collective vision of the value creation plan, alongside ensuring that all stakeholders benefit from retaining a robust financial base and further enhanced asset and risk management strategies.”

Completion of this transaction is subject to customary conditions, including completion by AXA of the informing of and consultation with the relevant works councils, as well as regulatory approvals by the Central Bank of Ireland and customary anti-trust approvals. The transaction is expected to be completed by the end of 2018 or early 2019.

Advisors to the transaction included: JP Morgan, financial advice; Milliman, actuarial and hedging; Deloitte, finance, operational and information technology due diligence; Deloitte, tax; Clifford Chance, legal (transaction and other); A&L Goodbody, legal (regulatory); Marsh, insurance.

Sovereign Capital, the UK private equity Buy & Build specialist, is pleased to announce that portfolio company Arachas Corporate Brokers (“Arachas”), a leading insurance brokerage operating in Ireland, has acquired Kidd Insurances (“Kidd”). This is the second acquisition Arachas has made since Sovereign backed the management buy-out of the business earlier this year and makes the group the third largest commercial insurance broker in Ireland. Sovereign will continue to work with the management team to further grow and develop the business through a strategy of Buy & Build. The transaction is subject to approval from the Central Bank of Ireland.

Kidd Insurances is one of Ireland’s longest established Insurance brokers serving both the retail customer and broker community with its specialist affinity insurance product range. The transaction closely follows Arachas’ acquisition of Capital Cover Group. The combined group will employ approaching 230 staff across its offices in Dublin, Cork and Waterford.

Neil Cox, Partner, Sovereign Capital commented: “We are delighted to have supported Arachas’ acquisition of Kidd which is a high quality, long established operator.  The transaction both develops the Group’s product offering and further consolidates its position in the Irish market. We look forward to working with the management team to further expand the Group.”

Donal Cronin, CEO of Arachas said: “We are delighted to have acquired Kidd. They mirror our philosophy of providing the very best in customer service and focus on niche Insurance solutions with their unique product range. In partnership with Sovereign, we will continue to develop the business through strong organic growth and further acquisitions of like-minded brokers.”

Other portfolio investments held by Sovereign in the financial services and insurance sectors include Kindertons, the nationwide provider of outsourced accident management services for motor insurers and insurance brokers. Since being backed by Sovereign, Kindertons’ revenue has tripled to over £150m.