Duperreault says he left Hamilton to 'fix issues' at AIG
Brian Duperreault, the new president, CEO and director of American International Group (AIG), explained that he left the Bermuda-based Hamilton Insurance Group to fix issues at AIG which was recently hit by large losses, impacting investors’ confidence.
Duperreault has been officially appointed AIG’s new president, CEO and director on May 15, at the same time resigning from his post as chairman and Group CEO of Hamilton.
AIG reported a $3 billion loss in the fourth quarter of 2016 driven by its US casualty business which resulted in the resignation of CEO Peter Hancock.
Explaining his decision to become AIG’s CEO to Hamilton’s employees, Duperreault said: "If you ask me why I’m leaving, it’s not because there are issues at Hamilton.”
I know that Hamilton is in great shape. Some of the best minds in the business work here."
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."
Attune is a technology-enabled company established by AIG, Hamilton Insurance and Two Sigma in September 2016.
“Through Attune, I’ve learned that cross-industry partnerships – what’s now called insurtech - are the way to go," said Duperreault. "I can’t think of better partners to have than Hamilton and Two Sigma as we work together to transform our industry.”
Attune’s target market will be expanded to include companies with annual revenues of up to $35 million, a target market segment of up to $150 billion in annual gross written premiums. Hamilton will retain its one-third ownership of Attune.
As part of a renewed partnership, AIG and Hamilton are set to work closer together. AIG, Hamilton Insurance Group, and Two Sigma have entered into a memorandum of understanding (MOU) which includes expanding their cooperation beyond Attune.
Hamilton Re and AIG will also enter into a reinsurance strategic partnership in which Hamilton Re will be provided with the opportunity to participate in at least $150 million of reinsurance premium per year for six years (the "Reinsurance Strategic Partnership"), which minimum amount will increase by seven percent per year following the first year.
Meanwhile, AIG has agreed in principle to acquire Hamilton USA for $110 million.
In addition, AIG and Two Sigma Insurance Quantified (TSIQ) will enter into a partnership to leverage TSIQ’s insurance-focused data science and technology expertise for a broad spectrum of commercial insurance underwritten globally by AIG.
Duperreault said the move could be "transformative for Hamilton".
"As a part of the expanded partnership with AIG and TSIQ, Hamilton will play a significant role in leading the data-driven evolution in underwriting. That’s what we had in mind when we launched the Company just over three years ago," he commented.
"Hamilton was founded on a bold idea whose time had come. As other industries leapt ahead in their pursuit of value in data and technology, insurance lagged behind. It was only a matter of time before someone disrupted the industry. Hamilton’s investors believed that with the right underwriting talent and with Two Sigma’s data science prowess, we could be the ones to do it. And we’ve been proven right."
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