Lloyd’s of London has been given a major boost today after American International Group (AIG) revealed plans to set up its new high-end business at the historic marketplace.
AIG is launching a syndicate at Lloyd’s of London aimed at serving the specialist US high net worth market in a move that it said could generate up to $1bn (£780m) in annual premiums.
AIG’s syndicate, which will cover insurance for aspects including fine arts and property, comes on top of its existing business at the marketplace, which is managed by its Talbot Underwriting unit.
Lloyd’s boss John Neal, who has targeted the US market since taking charge last year, recently unveiled plans to modernise the 330-year-old business.
Following a string of company losses and criticism of its culture, the chief executive has revealed a swathe of modernisation reforms.
Neal described the incoming new business, dubbed “Syndicate 2019”, as “a significant endorsement of the future at Lloyd’s and represents strong support for our vision to build the most advanced insurance marketplace in the world.”
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He added: “We are delighted that AIG has made the strategic decision to partner with the Lloyd’s market to bring specialty niche business which wouldn’t otherwise naturally find its way into Lloyd’s.”
AIG’s chief executive of general insurance Peter Zaffino said: “AIG’s industry recognised Private Client Group and its differentiated distribution network are highly compatible with Lloyd’s blueprint for innovation and sustained growth.”
The syndicate is set to start writing policies from the beginning of next year.