AIG, Hamilton Insurance Group and Two Sigma Insurance Quantified Announce Expansion of Partnership
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 and BERMUDA, 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.
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 Wiliam 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.
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.
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.
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 [email protected].