American International Group, (AIG) has revealed it is to transfer a bloc of its private client business to two rivals as it seeks to focus on high net worth personal lines.
The underwriter has entered into an agreement with Safeco Insurance, a Liberty Mutual Company, and Heritage Insurance Holdings, to offer AIG Private Client Group’s (PCG) agents the ability to transition their upper middle market personal insurance business to Safeco and Heritage.
“AIG will transition a select portion of its personal insurance business that provides upper middle market clients with home, auto and umbrella insurance policies to Safeco and Heritage,” it said in a statement. “This transaction further reflects AIG Private Client Group’s strategy to focus on the high net worth segment, where it is a recognised market leader.”
Under the terms if the agreement the transfer will take place during the fourth quarter of the year.
“Building on the recent launch of Lloyd’s Syndicate 2019 and the refinement of PCG’s risk appetite, this agreement optimises our portfolio and allows us to focus on our relationships with our high net worth clients and distribution partners, thereby strengthening our core value proposition,” said Kathleen Zortman, President & Chief Executive Officer of Private Client Group, AIG General Insurance. “We look forward to working with Safeco and Heritage to provide AIG PCG’s upper middle market agents and their customers with a seamless transition.”
Gary Fischer, Senior Vice President of Independent Agency Channel Growth and Engagement at Safeco Insurance said: “We look forward to partnering with AIG agents to leverage our expanding selection of premier products to help them grow their preferred, upper middle market book with Safeco.”
Bruce Lucas, Chairman & CEO for Heritage Insurance added: “We are excited to partner with leading personal lines insurance carriers that share our core values. We look forward to partnering with AIG agents, who can expect a seamless transition and strong opportunities for continued growth in the upper middle market customer segment.”