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Duperreault appointment ties Hamilton closer to AIG

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Brian Duperreault’s move to run American International Group Inc. will forge a close partnership between AIG and Hamilton Insurance Group Ltd., the insurance and reinsurance group he has led for the past four years.

AIG will buy Hamilton’s U.S. insurance platform for about $110 million and have a closer reinsurance relationship with AIG, among other things, the companies announced Monday after Mr. Duperreault was confirmed as CEO of AIG.

In addition, Hamilton said that its board had appointed William Freda as chairman and David Brown as interim group CEO, effective immediately to fill the positions left by Mr. Duperreault.

Hamilton also said it has signed a memorandum of understanding with AIG and Two Sigma Insurance Quantified, an affiliate of Two Sigma L.P., the hedge fund firm affiliated with Hamilton, where the three firms, who have an existing relationship, will work together more closely. Attune, an online insurance platform, will expand to target a market segment of companies with annual revenues of up to $35 million, representing up to $150 billion in annual gross written premiums.

“If you ask me why I’m leaving,” Mr. Duperreault said in a letter to the employees at Hamilton, “it’s not because there are issues at Hamilton. I’m leaving because there are issues at AIG. And I think I can help fix them, in no small part by unlocking the potential represented by the Hamilton/Two Sigma/AIG partnership already in place at Attune.”

Hamilton has expanded significantly since its relaunch when Mr. Duperreault took over the leadership of the firm. It’s U.S. platform makes extensive use of technology in underwriting, including a business owners policy that relies on data rather than extensive underwriting questions to offer coverage quotes.

In addition, Hamilton USA will transfer its ownership in Attune to Hamilton Insurance Group. Hamilton USA will become a stand-alone unit of AIG that will be used to develop a technology platform applying data science and analytics to transform underwriting.

AIG and TSIQ will set up a partnership where TSIQ will develop a technology-enabled platform supporting a broad spectrum of commercial insurance at AIG.

In addition, Hamilton Re and AIG will enter into a strategic partnership where Hamilton Re will be able to participate in an increased volume of AIG’s ceded reinsurance.

“While we are losing a much-revered leader at Hamilton, we are gaining a powerful ally at AIG,” a Hamilton statement said. “Brian Duperreault helped lay the foundation at Hamilton and will consider Hamilton a valued partner as AIG President and CEO.”

Mr. Freda, the newly appointed chairman, joined Hamilton’s board in June, 2014, and chairs the board’s audit committee. Mr. Brown has been a member of the board since Hamilton’s establishment in December 2013 and is chairman of the Finance and Governance Committee.

He retired from Deloitte L.L.P. in 2014, having worked for the firm for 40 years.

Mr. Brown was CEO of Flagstone Reinsurance Holdings Ltd. from its foundation in October 2005 until November 2012. He was also chief executive of Centre Solutions from 1994 until 1997.

The board will begin searching for a group CEO after its June meeting, Hamilton said, and internal and external candidates will be considered.