US-based international insurance and financial services organization American International Group (AIG) has teamed up with Chubb and GS Capital Partners 2000 (GSCP) to form a Bermudan insurance and reinsurance business.
Allied World Assurance Company (AWAC) will underwrite worldwide commercial property and casualty insurance and reinsurance, property catastrophe treaty reinsurance and certain specialty lines.
The new company intends to start underwriting no later than 3 December 2001 to meet the expected demand for insurance in the January renewal period.
AWAC's holding company has total equity capital of approximately $1.5bn (£1.06). AIG contributed approximately $291m (£205.8m) while Chubb and GSCP each contributed approximately $250m (£176.8m). The remaining amount was contributed by outside investors.
AIG chairman and chief executive officer Maurice Greenberg will serve as the chairman of the board. Chubb chairman and chief executive officer Dean O'Hare will serve as deputy chairman.
Greenberg said: "Insurance markets have experienced unprecedented demand for a number of coverages, without which businesses cannot operate prudently.
"AWAC will supplement existing market capabilities and capacity, providing a broad range of insurance coverages worldwide for businesses that have large and complex risks."
Chubb is a holding company for a family of property and casualty insurance companies known informally as the Chubb Group of Insurance Companies.
GSCP is the current primary investment vehicle for privately negotiated equity investments of global investment banking and securities firm Goldman Sachs.
