AIG sues former execs who launched E&S competitor
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American International Group Inc. and a number of its subsidiaries on Tuesday sued three former executives who recently launched an excess and surplus lines holding company, saying they unlawfully used proprietary information to start the business.
AIG said in the suit filed in federal court in New Jersey that Michael Price, former CEO of North America General Insurance at AIG, and Kean Driscoll, former chief underwriting officer, violated terms in their employment agreements when forming Dellwood Insurance Group LLC.
Mr. Price and Mr. Driscoll are also accused of using AIG’s proprietary information when recruiting Thomas Connolly, who was then chief financial officer of North American Insurance, to join them.
The three former executives announced the launch of Dellwood on March 7 shortly after the expiration of Mr. Driscoll’s noncompete agreement. Mr. Price’s noncompete agreement expired in September 2023, but he was still prohibited from soliciting AIG’s employees and customers, disclosing AIG’s confidential information and disparaging the company, the lawsuit says.
The suit contends Mr. Price and Mr. Driscoll began planning the formation of Dellwood and secured $250 million from investors for its launch while still subject to agreements they had with their former employer.
AIG asserts claims for breach of contract, breach of fiduciary duty, unfair competition and violation of the Computer Fraud and Abuse Act.
The case is American International Group Inc. et al. v. Dellwood Insurance Group LLC et al.
Representatives for the parties did not respond to requests for comment.
