American International Group today said it has a definite agreement to acquire the renewal rights for most of the Everest Group’s retail commercial insurance business.
Terms of the deal were not disclosed.
The renewal rights of these businesses total about $2 billion of aggregate gross premiums written.
“We expect these renewal rights transactions to drive incremental growth in our general insurance portfolio, and we will be able to write these policies within our existing balance sheet with no incremental capital required,” said Peter Zaffino, chairman and CEO at AIG.
AIG said exposure to liabilities will remain with Everest, who will also continue to administer claims with respect to its policies. AIG will get the rights to renew commercial retail business in the U.S., U.K., Europe, and Asia Pacific.
“Today’s strategic action results in a more focused, higher-performing Everest,” said Jim Williamson, Everest president and CEO. “Going forward, Everest will be optimally positioned to respond to evolving market needs while building on our track record of sustainable financial returns over the long term.”
Topics
Mergers & Acquisitions
Commercial Lines
AIG
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