The Carlyle Group and T&D have wrapped up the previously announced acquisition of a 76.6% stake in Fortitude Group after securing the regulatory nod.
The deal was announced last November.
The seller was American International Group (AIG), who received around $2.2bn in proceeds upon closing.
This includes the acquisition price of $1.8bn and additional consideration as per the deal terms.
T&D representative director and president Hirohisa Uehara said: “T&D will focus on supporting Fortitude Re by contributing our expertise in life insurance business in Japan to create synergies with our domestic life insurance business as well as to diversify our business portfolio.
“We look forward to working together with Fortitude Re, AIG and Carlyle in the closed block business.”
Fortitude Group’s group companies include Fortitude Re, which reinsures around $30bn of reserves from AIG’s Legacy Life and Retirement Run-Off Lines and nearly $4bn of reserves from the company’s Legacy General Insurance Run-Off Lines related to business written by AIG subsidiaries.
Carlyle now owns a 71.5% stake in Fortitude Re, T&D holds 25%, and AIG holds a 3.5% interest.
AIG CEO Brian Duperreault said: “Closing this transaction marks the completion of a significant milestone in AIG’s strategy to efficiently manage our legacy liabilities while strengthening our balance sheet and upholding our commitments to regulators and policyholders.”