AIG is set to launch its new independent managing general agent (MGA), Private Client Select Insurance Services (PCS), having finalized its agreement with funds managed by private equity firm Stone Point Capital.

PCS will serve the high net worth (HNW) and ultra high net worth (UHNW) markets, AIG said today in a press release.

AIG’s Private Client Group (PCG) business will move to the new platform and be rebranded. PCS will begin producing business in Q3 2023, the insurer said. This is subject to regulatory approval.

Terms of the transaction were not disclosed.

PCG’s team, including president and CEO Kathleen Zortman, are expected to transfer to PCS, AIG chairman and CEO Peter Zaffino said in February. Zortman has served as president and CEO of PCG since 2019.

“As previously disclosed, AIG has been exploring structures that, over time, will allow PCG to be supported by third-party capital providers, including AIG and its innovative syndicate at Lloyd’s, referred to as Syndicate 2019,” Zaffino said in a February update. “By partnering with a world-class private equity firm like Stone Point, we can maximize the strengths of this business and improve product offerings to better serve the high and ultra high net worth markets.”

PCG has honed its focus on the HNW market in recent years, having started to transfer out a “select portion” of its upper-middle-market clients to Safeco and Heritage in 2020.

Stone Point managing director Jim Carey said in February that he anticipated the PCS venture would “create significant value for all stakeholders”.

Stone Point is an investment firm based in Greenwich, Connecticut, and has over $45 billion assets under management. In February, funds managed by Stone Point took on a 20% stake in Truist Insurance Holdings, the sixth largest insurance brokerage in the US.