American International Group, Inc. (AIG) made history on Monday with the launch of the largest ever syndicate through Lloyd’s.
Syndicate 2019 has been set up to exclusively reinsure risks from AIG’s Private Client Group (PCG), which has a leading market position in the high net worth (HNW) segment. AIG has secured significant capital support for the syndicate from third-party investors and capacity providers. When combined with its existing Lloyd’s operations, AIG now operates the ninth largest managing agency in the Lloyd’s market, in terms of capacity.
“Syndicate 2019 is a unique and industry-defining structure between AIG and the oldest insurance market in the world,” said Peter Zaffino, president & global chief operating officer, AIG. “Our partnership with Lloyd’s will materially benefit PCG’s clients and enable our high net worth business to further capitalize on its pre-eminent market position.
“For AIG, this transaction represents a continuation of our strategy to optimize our general insurance portfolio, create additional products for clients, diversify our capital base, and improve the quality of our earnings to drive value for all our stakeholders.”
According to AIG, Syndicate 2019 presents Lloyd’s and its third-party investors and capital providers with compelling access to the HNW segment. The insurer also looks forward to enhancing PCG’s value proposition additional products and holistic risk management solutions provided through the Lloyd’s market.
Talbot Underwriting Limited, the managing agency acquired by AIG in 2018 as part of the Validus transaction, will manage Syndicate 2019. Mirroring PCG, the syndicate’s product catalogue will include homeowners, auto, collections, yacht, personal umbrella and specialty coverage for earthquake, excess flood and workers’ compensation.
AIG received advice on the transaction from Aon, Evercore and Skadden, Arps, Slate, Meagher & Flom LLP.