RenaissanceRe Holdings Ltd has concluded its acquisition of Validus Re, the treaty reinsurance business of American International Group Inc.

The deal includes Validus Reinsurance Ltd and its consolidated subsidiaries, AlphaCat Managers Ltd, and all renewal rights to the Assumed Reinsurance Treaty Unit of Talbot.

AIG said it received total consideration of $3.3 billion in cash, including a pre-closing dividend, and approximately $275 million in RenaissanceRe common shares.

Kevin J. O’Donnell, president and chief executive officer of RenaissanceRe, said: “We are delighted to complete the Validus Re acquisition today.

“We are bringing together two of the best reinsurance underwriters and look forward to the risk expertise and scale that our combined company will bring to our customers.

“This transaction accelerates our strategy, expands our ability to match efficient capital to desirable risk, and positively impacts each of our three drivers of profit – underwriting, fee and investment income.

“We are pleased to extend our partnership with AIG and have strong conviction that this transaction will create both immediate and long-term value for our shareholders.”