NEW YORK (AP) — Insurer AIG is buying Validus, a provider of reinsurance, primary insurance, and asset management services, in a deal worth approximately $5.56 billion.

American International Group Inc. said Monday that it will pay $68 for each share of Validus Holdings Ltd. That's a 45.5 percent premium to the Bermuda company's Friday closing price of $46.72.

Shares of Validus rose almost 5 percent before the market opened.

AIG President and CEO Brian Duperreault said in a prepared statement that the acquisition will bring new businesses and capabilities to the New York company's general insurance operation.

The deal is targeted to close by the middle of the year. It still needs approval from Validus shareholders.