AIG to acquire the majority of renewal rights to Everest Group’s global retail insurance portfolio in $2 billion deal

Core Insights - AIG is acquiring the renewal rights to the majority of Everest Group's global retail insurance portfolio for $2 billion, which will expand AIG's customer base without assuming Everest's past liabilities [1][2][6] - This acquisition is part of AIG CEO Peter Zaffino's transformation strategy for the company, aimed at enhancing its portfolio growth in general insurance [2][7] - The deal will help Everest manage its loss reserve issues, particularly after underestimating claim costs in its U.S. casualty insurance business [2] AIG's Position and Strategy - AIG, valued at $44 billion, serves over 88 million customers globally and operates in more than 200 countries, while Everest is valued at approximately $14.5 billion [4] - The acquisition allows AIG to gain access to existing North American clients by early 2026 and European clients in Q1 of 2026, pending regulatory approvals [3] Financial Implications - The deal does not require AIG to seek external capital or incur debt, allowing it to acquire the portfolio and client relationships without inheriting existing liabilities from Everest [6] - AIG's general insurance segment has shown consistent growth, with $23.9 billion in insurance premiums written in 2024, a 6% year-over-year increase, and new business reaching $4.5 billion, a 9% increase [7]