FILE PHOTO: Banners commemorating the 100th anniversary of American International Group Inc. adorn the New York Stock Exchange in Manhattan, New York, U.S. October 10, 2019. REUTERS/Suzanne Barlyn

(Reuters) - U.S. insurer American International Group Inc AIG.N said on Monday it would sell a major portion of its stake in reinsurer Fortitude Re to buyout fund Carlyle Group CG.O and Japanese insurer T&D Holdings 8795.T for about $1.8 billion.

Following the deal, AIG’s stake in the company will drop to 3.5% from about 80%, while Carlyle’s ownership in the company will rise to 71.5% from about 19.9%. T&D will have a 25% stake.

The transaction is expected to close in mid-2020.

Willkie Farr & Gallagher LLP served as legal adviser to AIG.

Debevoise & Plimpton LLP was Carlyle’s legal adviser, while Oliver Wyman was its financial adviser.

Citi was T&D’s financial adviser and Nishimura & Asahi, King & Spalding LLP and Appleby were its legal advisers.