AIG to launch new MGA for ‘attractive’ ultra high net worth markets

Global re/insurance conglomerate  American International Group (AIG) plans to launch a new managing general agency (MGA) to serve “attractive” high net worth (HNW) and ultra HNW markets.

The re/insurer has entered into a binding memorandum of understanding with Stone Point Capital to form an independent MGA. AIG’s Private Client Group (PCG) business will move to this new independent platform and be rebranded as Private Client Select Insurance Services (PCS).

PCG personnel, including its leadership team led by PCG president and chief executive officer Kathleen Zortman, will transfer to the MGA once it is formed. Throughout the transfer process, clients and distribution partners will continue to be serviced by PCG.

Completion of the proposed transactions among AIG and Stone Point is subject to negotiation of definitive agreements, obtaining required permits and regulatory approvals.

Peter Zaffino, chairman and chief executive officer of AIG, said: “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. 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.”

Jim Carey, managing director of Stone Point, said: “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. 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.”

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