RenaissanceRe Holdings Ltd. has purchased the reinsurance business of American International Group Inc. in a deal worth roughly $3 billion.

RenaissanceRe will pay $2.74 billion in cash and $250 million of common shares for AIG’s Validus Re unit as well as the AlphaCat and the Talbot Treaty reinsurance business, AIG said in a statement, according to Bloomberg News. AIG will hold onto Talbot Underwriting Ltd. as well as Western World. RenaissanceRe also said that it expects AIG to make “substantial investments” in its capital partners business, reported Bloomberg, which includes the DaVinci Reinsurance and Fontana Re managed funds.

“This acquisition advances our strategy as a leading global property and casualty reinsurer, providing additional scale, and increasing our importance to customers,” RenaissanceRe CEO Kevin O’Donnell states. “By gaining access to a large, attractive book of reinsurance business in a favorable market environment, we expect to accelerate our three drivers of profit – underwriting, fee, and investment income.”