American International Group (AIG) announced a strategic partnership with global private markets firm CVC.
The partnership, announced Jan. 19, includes the establishment o
f large-scale separately managed accounts (SMAs) across CVC’s credit strategies, for which AIG will allocate up to $2 billion. An initial $1 billion will be deployed this year, AIG said.
The partnership also includes the launch of CVC’s private equity secondaries evergreen platform with AIG as a cornersto
ne investor, contributing up to $1.5 billion from its existing private equity po
rtfolio to provide scale and a seed portfolio for the strategy. It also “enables AIG to efficiently manage and transition its legacy private equity exposures.”
AIG said the companies expect to explore additional areas of collaboration over time.
AIG chief executive Peter Zaffino, who the insurer said is stepping down at midyear, said CVC is a “highly respected, world
-class global investment manager” and that the partnership is AIG’s first
with an European headquartered asset manager. CVC is headquartered in Luxembourg.
“We look forward to leveraging CVC’s investment expertise and to the l
ong-term value we will create through our strategic partnership.” Zaffino said.
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Rob Lucas, CEO of CVC, said the SMA component of the deal “demonstrates the depth of our credit platform and our capability to d
eliver bespoke, capital-efficient solutions for insurers worldwide.”
SB 1438 would establish requirements to determine excessive insura
nce company profits and require a refund of certain amounts if an insurer’s profits are deemed excessive. According to the bill, an insurer shall be deemed to have excessive profit if t
here has been an underwriting gain for three consecutive years combined that is greater than the anticipated underwr
iting profit plus five percent of earned premiums for those calendar years.
The bill states that if an is deemed to have excessive profit, the insurance commissioner shall order a pro-rata return of the excessive
amounts after affording the insurer group an opportunity for hearing.
SB 1444 would give the insurance commissioner to reject rate increases that are too high. The bill would require insurance companies to file paperwork justifying the rate before being able to move forward with an increase.