American International Group (AIG) has announced that it will launch an independent managing general agency (MGA) that is focused on serving the high-net-worth and ultra-high-net-worth markets.
To be established through a binding memorandum of understanding with private equity firm Stone Point Capital LLC, the MGA platform will see AIG’s Private Client Group (PCG) business moved to the new unit. The unit will be welcomed to the market under the banner of ‘Private Client Select Insurance Services (PCS).’
PCG’s personnel, including its leadership team led by PCG president and CEO Kathleen Zortman, will transfer to PCS once it is formed.
“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,” said AIG chairman and CEO Peter Zaffino. “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.”
“We are excited to be entering this partnership and look forward to building a top performing MGA committed to excellence in the attractive high and ultra high net worth markets,” added Stone point managing director Jim Carey. “I am confident that Stone Point’s experience in the insurance industry, coupled with AIG’s risk management expertise and product knowledge, will create significant value for all stakeholders.”
Completion of the proposed transactions is subject to the negotiation of definitive agreements and the obtaining of required permits and regulatory approvals.
Late last month, AIG announced that it had fired its interim finance chief, Mark Lyons. Lyons had taken over the role earlier in January but was terminated over “violations of confidentiality/non-disclosure obligations.”