ACE Limited’s acquisition of Chubb Insurance could create opportunity for American International Group (AIG), which is already a major player in the high net worth market along with both ACE and Chubb.
Asked during an analysts’ call about the ACE-Chubb merger, AIG CEO Peter Hancock said the deal has no direct effect on AIG’s strategy but opens up possibilities.
“It does create opportunity in terms of customers, talent and a slight shift in the balance of power between carriers and brokers” given there will be fewer carriers in the market, he said.
AIG’s Private Client Group serves the high-end personal lines market that is also targeted by both Chubb and ACE, which strengthened its position last year when it took over the high net worth business of the other major carrier in the space, Fireman’s Fund. Thus the number of larger insurers serving this market will be down to two.
He said AIG is not interested in a large acquisition at this time as it is still merging two of its Japanese units, AIU and Fuji Fire & Marine, a process the company said is taking somewhat longer than anticipated.
Hancock did say AIG may be making “modest” acquisitions.
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