The AIG Companies have formed AIG Specialty Excess, an umbrella and excess casualty underwriting unit that the company says will concentrate on insuring specialty and difficult-to-place classes of business including construction, transportation, public entities and educational institutions.
Effective May 15, 2006, AIG Specialty Excess will respond to all in-force business, as well as new and renewal business currently handled by the C.V. Starr & Co. agency, a subsidiary of C.V.Starr & Co., Inc.
C.V. Starr is run by AIG’s own former chairman and CEO, Maurice “Hank” Greenberg. The parties have been in a court dispute over Starr’s attempts to move its AIG business to other carriers.
AIG Specialty Excess will operate nationwide. It will be headed by
Chris Maleno. Maleno has been with the AIG Companies for 11 years and is also president of AIG Excess Casualty.
The move follows AIG’s announcemnt on Feb. 17 that it had terminated the agency relationship with Starr Technical Risks Agency, Inc. and its subsidiaries (Starr Tech), insurance agencies owned by C.V. Starr & Co., Inc.
According to AIG’s Feb. 17 announcement, all current and future underwriting, claims, loss control and administrative functions relating to accounts formerly underwritten by Starr Tech on behalf of the AIG Companies will be managed by New York-based AIG Global Energy, which already provides insurance and risk management programs to energy and energy-related companies worldwide.
AIG Global Energy has expanded its scope of operations by creating a new division, AIG Global Energy-North America, to serve the worldwide property insurance needs of insurance customers in North America. AIG Global Energy-North America will initially have offices in New York, Hartford, Conn., and Houston, Tex., as well as Toronto and London.
Starr Technical is a managing general agency that specializes in oil and chemical industry insurance.
Earlier this month, a New York judge granted AIG a restraining order against Greenberg and Starr Technical Risk Agency that bars Starr from placing its AIG business with other insurers.
The order barred Greenberg’s agency from pursuing contracts with National Indemnity, a Berkshire Hathaway unit, for business currently with AIG.
New York State Supreme Court Justice Herman Cahn said his restraining order would remain in effect until the parties settle their differences in arbitration.
AIG has claimed that Starr Technical has been using “unauthorized” reinsurance agreements with National Indemnity to take business now placed with AIG and give it to other insurers. AIG maintains that Starr Technical and AIG have had an exclusive contract since 1992, which includes allowing Starr Technical to sell policies in AIG’s name.
C.V. Starr has countersued charging that AIG is trying to keep its agency from competing. Starr claims that its agency is free to write accounts with other carriers when AIG is not competitive. Its lawyers have accused AIG of trying to close down Starr agencies and urging clients not to do business with Greenberg’s companies.
Topics New York Excess Surplus AIG
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