AIG sells majority stake in managing general agent

American International Group Inc. has agreed to sell a controlling stake in NSM Insurance Group to private equity investment firm, ABRY Partners.

Terms were not disclosed.

Conshohocken, Pennsylvania-based NSM Insurance Group is a managing general agent and insurance program administrator. AIG acquired its stake in NSM from ABRY in March 2015, AIG said in a statement Friday.

The companies will form a joint venture that will use AIG's relationship with NSM and ABRY's investment experience to expand the NSM platform. AIG will have a minority interest in the venture and will continue to provide underwriting capacity to NSM, according to the statement.

“Our investment in NSM last year helped us meet a number of key strategic and economic objectives that expanded AIG's access to new attractive customer segments,” Robert Schimek, CEO of AIG Commercial Insurance said in a statement. “This transaction now shifts our relationship into a joint venture that will further accelerate NSM's growth with ABRY's funding, while continuing to provide AIG with opportunities to underwrite new programs that offer unique solutions to our clients.”