AIG to form independent managing general agency

American International Group announced that it has entered into a binding memorandum of understanding with Stone Point Capital LLC, a private equity firm focused on investing in businesses within the global financial services industry, to form an independent Managing General Agency to serve High Net Worth and Ultra High Net Worth markets. AIG‘s Private Client Group business will move to this new independent platform and be rebranded as Private Client Select Insurance Services. "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. By partnering with a world-class private equity firm like Stone Point, we can maximize the strengths of this business and improve product offerings to better serve the High and Ultra High Net Worth markets," said Peter Zaffino, Chairman and Chief Executive Officer, AIG. Completion of the proposed transactions among AIG and Stone Point is subject to negotiation of definitive agreements, obtaining required permits and regulatory approvals. The terms of the transaction have not been disclosed.