As the financial condition in the global market has started to improve, insurance companies have also started expanding their operations once again. In this series, the prominent global insurance provider American International Group Inc (NYSE:AIG) has decided to acquire a controlling stake in NSM management and a renowned private equity firm ABRY Partners.
What Led AIG To This Acquisition:
The reason that prompted AIG to execute this transaction is no different from any other global service provider. The competition has elevated to high level, and the company that has limited product and services cannot survive in the market for a long period. In order to make sure that elevating market competition doesn’t affect AIG’s share, the company has decided to diversify its offerings by acquiring two new firms.
It’s not the first time when this insurance giant has acquired any company. Recently it acquired Laya Healthcare, which is the second largest health insurance provider in Ireland. As per the report, the current NSM Insurance deal is supposed to close within the 30 days. AIG has not yet cleared its stand in terms of the price that it had to pay to NSM Insurance.
Geof McKernan, Chief Executive Officer, NSM Insurance, said in a press conference that this deal brought a huge financial support for the company. He added that it would help the company execute various internal activities, as well as a few acquisitions. NSM Insurance is based in Conshohocken, Pa and has more than 300 employees.
American International Group Inc (NYSE:AIG) has been going through a transition phase since the last September when Robert Benmosche retired from CEO’s post. He left the chair after rendering services for five years. This period also included the financial crisis during which AIG had to pay one of the largest bailout packages of its history. Management of AIG seems delighted to bring NSM Insurance on board and hopes that it will enhance company’s global market share and revenues.