American International Group said Monday it entered into a binding memorandum of understanding with Stone Point Capital, a private equity firm specializing in investing in businesses within the global financial services sector, to create an independent managing general agency to serve high-net-worth and ultra-high-net-worth markets.
AIG's Private Client Group will shift to the new independent MGA platform and be rebranded as Private Client Select Insurance Services.
PCG personnel, including the leadership team led by Kathleen Zortman, PCG's CEO and president, will transfer to the MGA once it is formed. Throughout the transfer process, clients and distribution partners will continue to benefit from PCG's "high-touch" service.
Completion of the proposed AIG and Stone Point transaction is subject to negotiation of definitive agreements, obtaining required permits and regulatory approvals, AIG said. Terms of the transaction were not disclosed.
"As previously disclosed, AIG has been exploring structures that, over time, will allow PCG to be supported by third-party capital providers, including AIG and its innovative syndicate at Lloyd's, referred to as Syndicate 2019," Peter Zaffino, AIG CEO and chairman, said in a statement.
