AIG has agreed in principle to acquire Hamilton USA, Hamilton
Insurance Group’s U.S. platform
AIG and Two Sigma Insurance Quantified to partner to accelerate the
use of data science and technology for AIG’s global book of commercial
insurance business
Hamilton Re and AIG to enter into strategic reinsurance partnership
Attune to increase scope of target market segment in $150 billion
annual gross written premium SME segment
NEW YORK & HAMILTON, Bermuda--(BUSINESS WIRE)--May 15, 2017--
American International Group, Inc. (NYSE: AIG), Hamilton Insurance
Group, Ltd. (“Hamilton”), and Two Sigma Insurance Quantified, LP
(“TSIQ”), an independent affiliate of Two Sigma Investments, LP (“Two
Sigma”), today announced they have entered into a memorandum of
understanding (“MOU”) designed to expand their partnership with a view
to leading the data-driven evolution of underwriting.
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The MOU underscores AIG’s, Hamilton’s and TSIQ’s commitment to
transforming commercial insurance through data science and technology.
It follows the three companies’ investment in Attune, the data-enabled
technology platform launched in September 2016 to serve the U.S. small
to medium-sized commercial insurance market.
Under the terms of the MOU:
Attune’s target market will be expanded to include companies with annual
revenues of up to $35 million, a target market segment of up to $150
billion in annual gross written premiums. Hamilton will retain its
one-third ownership of Attune.
AIG has agreed in principle it will acquire Hamilton USA, the U.S.
platform of Hamilton Insurance Group, to continue accelerating its
application of data science and analytics to transform underwriting.
AIG and TSIQ will enter into a partnership to leverage TSIQ’s
insurance-focused data science and technology expertise for a broad
spectrum of commercial insurance underwritten globally by AIG.
Hamilton Re and AIG will enter into a reinsurance strategic partnership
in which Hamilton Re will be provided with the opportunity to
participate on market terms in an increased volume of AIG’s ceded
reinsurance. The relationship could result in material premium growth
for Hamilton Re and provides AIG an alternative source of reinsurance
capital.
“Putting data science and technology to work in our industry has been on
my agenda for some time,” said AIG President and Chief Executive Officer
Brian Duperreault. “It was the genesis of Hamilton Insurance Group’s
formation and will be a primary agenda item at AIG.
“Through Attune, I’ve learned that cross-industry partnerships – what’s
now called insurtech - are the way to go. I can’t think of better
partners to have than Hamilton and Two Sigma as we work together to
transform our industry.”
“Insurance is intrinsic to economic growth,” said David Siegel,
co-founder and co-chairman of Two Sigma Investments, LP. “Data science
and technology open a world of opportunity for this industry, from more
practical protection and smarter processes to a better understanding of
risk. This can be done while also lowering costs and more efficiently
utilizing resources. We are excited that TSIQ will be working with both
AIG and Hamilton to further capitalize on these benefits.”
“Since our founding, Hamilton and its strategic partner, Two Sigma, have
been committed to data-driven underwriting and risk management using
automated systems, algorithms and data analytics,” said Hamilton
Chairman William Freda. “We are excited by the transformative potential
the MOU represents for Hamilton through the expansion of Attune’s target
market and as new reinsurance opportunities of mutual benefit to AIG and
Hamilton Re are explored.”
Completion of the proposed transactions among AIG, Hamilton and TSIQ is
subject to negotiation of definitive agreements and obtaining required
regulatory approvals. In connection with entering into these
transactions, Sullivan & Cromwell LLP acted as legal counsel to AIG,
Kirkland & Ellis LLP acted as legal counsel to Hamilton, and Skadden,
Arps, Slate, Meagher & Flom LLP acted as legal counsel to TSIQ and Two
Sigma.
Forward-looking Statements
Certain statements in this press release constitute forward-looking
statements. These statements are not historical facts but instead
represent only the relevant party’s belief regarding future events, many
of which, by their nature, are inherently uncertain and outside the
relevant party’s control. It is possible that the transactions will not
be completed or that the transactions will take a materially different
form from those contemplated by these statements. Each party to this
press release only assumes responsibility for its statements, and does
not affirm or otherwise adopt the statements of any other party.
About AIG
American International Group, Inc. (AIG) is a leading global insurance
organization. Founded in 1919, today AIG member companies provide a wide
range of property casualty insurance, life insurance, retirement
products, and other financial services to customers in more than 80
countries and jurisdictions. These diverse offerings include products
and services that help businesses and individuals protect their assets,
manage risks and provide for retirement security. AIG’s core businesses
include Commercial Insurance and Consumer Insurance, as well as Other
Operations. Commercial Insurance comprises two modules – Liability and
Financial Lines, and Property and Special Risks. Consumer Insurance
comprises four modules – Individual Retirement, Group Retirement, Life
Insurance and Personal Insurance. AIG common stock is listed on the New
York Stock Exchange and the Tokyo Stock Exchange.
Additional information about AIG can be found at www.aig.com
and www.aig.com/strategyupdate
| YouTube: www.youtube.com/aig
| Twitter: @AIGinsurance | LinkedIn: http://www.linkedin.com/company/aig.
These references with additional information about AIG have been
provided as a convenience, and the information contained on such
websites is not incorporated by reference into this press release.
AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International
Group, Inc. For additional information, please visit our website at www.aig.com.
All products and services are written or provided by subsidiaries or
affiliates of American International Group, Inc. Products or services
may not be available in all countries, and coverage is subject to actual
policy language. Non-insurance products and services may be provided by
independent third parties. Certain property-casualty coverages may be
provided by a surplus lines insurer. Surplus lines insurers do not
generally participate in state guaranty funds, and insureds are
therefore not protected by such funds.
About Hamilton Insurance Group
Hamilton Insurance Group is the Bermuda-based holding company for
property and casualty insurance and reinsurance operations in Bermuda,
the U.S. and at Lloyd’s. The company leverages analytics and research to
create underwriting and investment value for its clients and
shareholders. For more information, please visit www.hamiltongroup.com
| Twitter: @HamiltonInsures | LinkedIn: https://www.linkedin.com/company/hamilton-insurance-group
About Two Sigma Insurance Quantified
Two Sigma Insurance Quantified, an independent affiliate of Two Sigma
Investments, LP, is dedicated to being a partner to some of the most
established companies in the insurance industry. Aligned with Two
Sigma's vision of finding value in the world's data, Two Sigma Insurance
Quantified utilizes technology, data science, intelligent automation and
cloud-based computing to foster innovation, better understand risk and
strengthen business and product offerings for the insurance industry.
For more information, visit twosigmaiq.com.
About Attune:
Attune leverages a state of the art, technology-enabled platform to
streamline the development and distribution of insurance products for
small to medium-sized commercial businesses. For more information,
please contact Attune at hello@attuneinsurance.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170515005722/en/
Source: American International Group, Inc.
AIG
Investors
Liz Werner, 212-770-7074
elizabeth.werner@aig.com
or
Media
Jennifer
Hendricks Sullivan, 212-770-3141
jennifer.sullivan@aig.com
or
Hamilton
Insurance Group
Media
Wendy Davis Johnson, 441-707-5240
wendy.davisjohnson@hamiltongroup.com
or
Two
Sigma
Media
Kelly M. Howard, 646-292-6223
kelly.howard@twosigma.com