AIG sells 20% in DSA Re to Carlyle in strategic partnership deal

American International Group (AIG) is selling 19.9 percent of its legacy portfolio DSA Re to private equity firm The Carlyle Group.

As part of the transaction AIG and Carlyle entered into a strategic partnership to build DSA Re into a standalone provider of reinsurance, claims handling, and run-off management solutions for long-dated, complex risks to the global insurance industry.

DSA Re currently reinsures $36 billion of AIG’s legacy life and annuity and general insurance liabilities. As part of the agreement, Carlyle entered a strategic asset management relationship whereby DSA Re and AIG will, in aggregate, allocate $6 billion of assets into various Carlyle managed strategies across corporate private equity, real assets, and private credit.

“AIG launched DSA Re to help us efficiently manage our legacy liabilities, honour our policy obligations and maximize financial flexibility,” said AIG CEO Brian Duperreault. “This partnership with Carlyle meets these objectives while allowing AIG to free up capital and participate in the build-out and growth of the business. We look forward to working closely with Carlyle to position DSA Re for long-term success,” Duperreault added.

Kewsong Lee, Carlyle’s co-CEO, said: “This strategic partnership extends Carlyle’s investment capabilities into the $15 trillion global insurance industry. Carlyle is excited to deliver our global investment platform across a variety of asset classes to DSA Re, and will work to generate attractive returns for the DSA Re portfolio for many years to come. We have a terrific partner in AIG, and will work closely together to help DSA Re become independent and positioned for growth over time.”

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