American International Group, Inc.’s (AIG) previously announced Lloyd’s Syndicate 2019 has received approval to commence underwriting.
Described by the insurer and reinsurer as a landmark Syndicate, AIG’s Syndicate 2019 is the largest ever to be launched through the specialist Lloyd’s of London re/insurance marketplace.
The Syndicate will exclusively reinsure risks from AIG’s Private Client Group (PCG), which is an industry-recognised brand with a leading market position in the High Net Worth sector.
AIG notes that it received significant capital support from high-quality investors and capacity providers for the launch of Syndicate 2019. Combined with the firm’s existing Lloyd’s operations, AIG now operates the ninth largest managing agency in the Lloyd’s market, in terms of capacity.
Peter Zaffino, President & Global Chief Operating Officer (COO) of AIG, commented: “Syndicate 2019 is a unique and industry-defining structure between AIG and the oldest insurance market in the world. Our partnership with Lloyd’s will materially benefit PCG’s clients and enable our High Net Worth business to further capitalize on its pre-eminent market position.
“For AIG, this transaction represents a continuation of our strategy to optimize our General Insurance portfolio, create additional products for clients, diversify our capital base, and improve the quality of our earnings to drive value for all our stakeholders.”
The new Syndicate provides both Lloyd’s and third-party investors and capital providers with a compelling opportunity to access the High Net Worth market. AIG states that clients will continue to benefit from PCG’s strong value proposition, which it says will be further enhanced by additional products and also holistic risk management solutions provided through Lloyd’s.
Syndicate 2019 is managed by Talbot Underwriting Limited, the managing agency acquired by AIG in 2018 as part of the Validus deal. AIG was advised on the transaction by Aon, Evercore and Skadden, Arps, Slate, and Meagher & Flom LLP.
As noted by AIG, current coverages offered by Syndicate 2019 reflect the product offering of PCG, including homeowners, auto, collections, yacht, personal umbrella and specialty coverage for earthquake, excess flood, and workers compensation.