The insurer plans to launch a new syndicate at Lloyd’s serving the US high net worth market, writing up to $1bn in gross written premiums by 1 January 2020
AIG is seeking regulatory approvals for a new Lloyd’s syndicate focused on underwriting specialist US insurance business for high net worth individuals.
The US insurer said it plans to start writing business through Syndicate 2019, effective from 1 January 2020.
This specialist syndicate would underwrite up to $1bn in gross premium, AIG said, and “represents substantial, accretive new business to the Lloyd’s market”.
AIG said the syndicate has already undergone the normal scrutiny Lloyd’s applies to any potential new entrant to the market.
It has also benefitted from some of the framework improvements for new entrants being piloted as part of the Future at Lloyd’s Blueprint One, the insurer said, including “a much-streamlined initial application-to-approval process of around four months”.
Syndicate 2019 would be managed by Talbot Underwriting Limited, the managing agency acquired by AIG in 2018, the insurer said. AIG added it is being advised by Evercore and Aon.
“AIG’s industry-recognized Private Client Group and its differentiated distribution network are highly compatible with Lloyd’s blueprint for innovation and sustained growth,” said Peter Zaffino, AIG’s CEO for general insurance, and global chief operating officer.
“We look forward to working closely with Lloyd’s to bring Syndicate 2019 to market, and to delivering enhanced differentiation and value to the US high net worth customer base,” he said.
Lloyd’s CEO, John Neal, added: “AIG Private Client Group is regarded as one of the flagship high net worth portfolios in the US, providing a bespoke underwriting and service proposition for its customers.
“We are delighted that AIG has made the strategic decision to partner with the Lloyd’s market to bring specialty niche business which wouldn’t otherwise naturally find its way into Lloyd’s.”
Neal added: “Syndicate 2019 is a significant endorsement of the Future at Lloyd’s and represents strong support for our vision to build the most advanced insurance marketplace in the world.”