AIG Europe has said it will be underwriting its high net worth (HNW) business through AIG private client group from its Lloyd's box.

The announcement follows a recent Datamonitor survey which revealed that the HNW sector is increasing in prominence.

According to the report, there were nearly one million individuals who fell under the HNW criteria in 2004, a 25% growth from the 2003 figure of nearly 750,000, and this is expected to grow by another 30% over the next five years.

Austyn Tusler, manager, AIG private client group, said:"Lloyd's has always been a natural home for brokers looking to place this type of business, and, by having a physical presence in the market, we hope to be able to engage with those brokers.

"We have been providing insurance for the HNW market for five years and have seen significant growth. We fully expect to be able to build on this success as the market expands."