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American International Group said it has finalized an agreement with private equity firm Stone Point Capital to form Private Client Select (PCS) Insurance Services.

PCS will be an independent managing general agent serving the high net worth and ultra high net worth market. PCS is expected to start doing business in the third quarter, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ said.

ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s Private Client Group (PCG) business will move to the new PCS platform and brand.

Terms of the transaction, first announced in February, were not disclosed.

Related: ÌìÃÀÍøÕ¾´«Ã½´«Ã½, Stone Point Capital to Form Independent MGA for High Net Worth Business

At the end of 2021, ÌìÃÀÍøÕ¾´«Ã½´«Ã½ CEO Peter Zaffino spoke about moving ÌìÃÀÍøÕ¾´«Ã½´«Ã½’s high net worth homeowners business out of the admitted market due to high frequency and severity of catastrophe losses. In mid-2022, Zaffino reported that ÌìÃÀÍøÕ¾´«Ã½´«Ã½ had exited the admitted personal property homeowners market in certain states, with a plan to set up something like PCS, supported by third-party capital.

“By partnering with a world-class private equity firm like Stone Point, we can maximize the strengths of this business and improve product offerings to better serve the high and ultra high net worth markets,” said Zaffino in February.

Also in February, Stone Point acquired 20% of insurance broker Truist for about $2 billion.

Topics Insurance Wholesale ÌìÃÀÍøÕ¾´«Ã½´«Ã½