American International Group (AIG) announced it has entered into an agreement with Safeco Insurance, a Liberty Mutual subsidiary, and Heritage Insurance Holdings to offer AIG Private Client Group’s (PCG) agents the ability to transfer their upper middle market personal insurance business to Safeco and Heritage.
As part of AIG PCG’s decision to focus its personal lines business on the high net worth segment, Safeco and Heritage will offer policy renewals to the portion of AIG PCG’s personal lines business that provides upper middle market clients with home, auto and umbrella insurance policies.
AIG said the transition will take place beginning in the fourth quarter of 2020, subject to regulatory requirements in relevant jurisdictions.
“Building on the recent launch of Lloyd’s Syndicate 2019 and the refinement of PCG’s risk appetite, this agreement optimizes our portfolio and allows us to focus on our relationships with our high net worth clients and distribution partners, thereby strengthening our core value proposition,” said Kathleen Zortman, president & chief executive officer of Private Client Group, AIG General Insurance, in a statement.
Clearwater, Fla.-based Heritage provided the following key points about the agreement:
- Heritage and Safeco will work together to seamlessly transition AIG customers at renewal.
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- More than 90% of Heritage’s portion of this transition is represented by policies outside Florida, benefiting portfolio diversification.
- Renewals will be offered in 16 of Heritage’s 17 licensed states, with the majority in the northeast.
- The first renewals will become effective in the fourth quarter of 2020 and will continue over the subsequent twelve-month period.
- Heritage will offer appointments to the AIG distribution partners with affected policies, expanding its current distribution force.
- Heritage will handle all quoting and policy issuance for policies transitioning to Heritage.
“As the carrier champion of independent agents, we have world-class book transfer capabilities to ensure a smooth transition for agents and customers,” said Gary Fischer, senior vice president of Independent Agency Channel Growth and Engagement at Safeco Insurance.
“We look forward to partnering with AIG agents to leverage our expanding selection of premier products to help them grow their preferred, upper middle market book with Safeco.”
Bruce Lucas, Heritage’s chairman and CEO, said, “We’re excited to partner with Safeco on this opportunity and look forward to developing relationships with new agents and providing a seamless transition for policyholders. Most of the premium is located outside Florida, furthering our multi-state growth initiatives and providing reinsurance synergies.”
About Safeco
In business since 1923, Boston-based Safeco Insurance sells personal automobile, homeowners and specialty products through a network of more than 10,000 independent insurance agencies.
About Heritage
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance holding company. Through its insurance subsidiaries – Heritage Property & Casualty Insurance Company, Narragansett Bay Insurance Company and Zephyr Insurance Company – and a large network of agents, the company writes more than $950 million of consolidated gross personal and commercial residential premium across its multi-state footprint.
Sources: AIG and Heritage
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