The move follows the finalisation of an agreement with private equity firm Stone Point Capital, which manages funds exceeding $45 billion in assets.
PCS will cater to the high net worth (HNW) and ultra-high net worth (UHNW) markets, according to AIG’s press release. The insurer’s Private Client Group (PCG) business will be rebranded and transferred to the new platform, with PCS set to begin producing business in Q3 2023. However, this is subject to regulatory approval, and the terms of the transaction have not been disclosed.
AIG’s Private Client Group to be supported by third-party providers
The team responsible for PCG’s success, including its president and CEO Kathleen Zortman, are expected to join PCS, AIG Chairman and CEO Peter Zaffino confirmed in February. Zaffino also revealed that AIG has been exploring structures that would enable PCG to be supported by third-party capital providers, including AIG and its syndicate at Lloyd’s, known as Syndicate 2019.
The creation of PCS, in partnership with Stone Point, will “maximize the strengths of this business and improve product offerings to better serve the high and ultra-high net worth markets,” Zaffino added. PCG has shifted its focus to the HNW market in recent years, transferring a “select portion” of its upper-middle-market clients to Safeco and Heritage in 2020.
Stone Point Managing Director Jim Carey said in February that the PCS venture would “create significant value for all stakeholders.” This move comes as funds managed by Stone Point recently took on a 20% stake in Truist Insurance Holdings, the sixth-largest insurance brokerage in the US.
With PCS targeting the HNW and UHNW markets, this new MGA is set to further strengthen AIG’s position as a leading insurer in the luxury market.
