AIG-driven venture targets small to medium enterprise market

A partnership between American International Group, Inc. Hamilton Insurance Group Ltd., and affiliates of Two Sigma Investments L.P. will target providing insurance to the small to medium-size enterprise market, the parties announced Tuesday.

The players have entered into a nonbinding memorandum of understanding to form the joint venture that will establish a “technology-enabled, customer-centric insurance platform,” the announcement said.

According to the announcement, the joint venture “will combine Two Sigma's proprietary data science and technology platform, Hamilton's technology and underwriting expertise in the SME market, and AIG's SME capabilities and global presence to become a leader in the $76 billion North American SME market.” The announcement also said that New York-based Two Sigma will partner with both AIG and the joint venture to develop specialized asset allocation solutions for the unique characteristics of insurance investment portfolios.

Brian Duperreault, chairman and CEO of Hamilton, Bermuda-based Hamilton, will serve as chairman of the board of the joint venture. Richard Friesenhahn, currently executive vice president of U.S. Casualty Lines at AIG, will serve as CEO.

Terms of the proposed joint venture were not disclosed. It is subject to negotiation of definitive agreements and obtaining required permits and other regulatory approvals, according to the announcement.