In a move to extend its global presence, the Canada Pension Plan Investment Board said it would buy Ascot, American International Group’s Lloyd’s of London platform, in a deal placed at $1.1-billion (U.S.).
With the acquisition of Ascot Underwriting Ltd and Ascot Corporate Name Ltd, the deal will grant “durable cash yield and an attractive scalable investment for the fund,” CPPIB stated on Friday.
AIG mentioned that the $1.1-billion includes CPPIB’s recapitalization of Ascot Syndicate 1414’s capital requirements.
Every member of the Lloyd’s of London insurance platform is mandated to provide capital as security to fund its total Lloyd’s underwriting business.
Ascot will maintain its operation as a standalone, independent business, run by its own board of directors and will keep its whole senior management team, headed by Andrew Brooks.