Dear Valued Broker,

AIG is refining its distribution strategy and risk appetite for North America General Insurance (AIG NA General Insurance), including its Lexington business. Access to AIG’s underwriting expertise is being streamlined in response to discussions with our wholesale and retail trading partners. We expect that these refinements will enhance our value to you and improve our core performance.  

The Lexington team will be organized by product lines, including Property, Casualty, Healthcare, Professional Liability, Programs and Group Captives.

As we begin 2019, Lexington will concentrate on the excess and surplus lines market, with its core property and casualty products available primarily through wholesale brokers. We recognize, however, that access to certain products or insurance solutions should not be limited to the wholesale market. For this reason, Lexington’s Healthcare, Professional Liability, Property Risk Management, Programs, Group Captives and other specialty business units will continue to work with both wholesale and retail brokers to provide coverage.

Transition Overview
New business will be aligned to either Lexington or AIG NA General Insurance’s business divisions based on the distribution models outlined below. You can expect us to make every effort to minimize any inconvenience to you. 

Property
Property products will be provided through wholesale and retail channels on an admitted and non-admitted basis as follows:

New Business
  • Lexington Property will accept new business from wholesale brokers exclusively.
  • Lexington’s Property Solutions / Alternative Risk Transfer (ART) group will accept new business from either retail or wholesale brokers.
  • AIG NA General Insurance Retail Property (NA GI Retail Property) will accept new business only from retail brokers.
  • Lexington London property submissions will be part of the NA GI Retail Property portfolio.
Renewals
  • All renewals will be handled through the current distribution source (wholesale or retail) on either an admitted or non-admitted basis with Lexington London submissions as part of the NA GI Retail Property portfolio.
Appetite
  • Both Lexington Property and NA GI Retail Property will provide capacity up to $1B for a wide variety of exposures, on a primary, excess or quota share basis. Lexington will focus on lower limits and/or smaller clients.
Casualty
AIG NA General Insurance Retail Casualty (NA GI Retail Casualty) coverage will be provided through wholesale and retail channels on an admitted and non-admitted basis as follows:

New Business – beginning March 1, 2019
  • Lexington Casualty will no longer accept new business from retail brokers for General Liability, Products Liability, Construction and Transportation lines of business.
  • Lexington Casualty will continue to accept new business for the following lines either from retail brokers with dedicated expertise for these lines or from wholesale brokers: Energy, Rail, Public Entity and Product Recall.  
  • Lexington London new business submissions will be part of the NA GI Retail Casualty portfolio.
Renewals
  • Retail brokers with renewals will be notified of their timeline for engaging a wholesale broker.
  • Lexington London submissions will be part of the NA GI Retail Casualty portfolio.
         The chart below illustrates Lexington Casualty’s realigned distribution model:
                            * Lexington Casualty will continue to accept new business either from retail
                             brokers with dedicated expertise for these lines or from wholesale brokers.
Healthcare
AIG NA General Insurance’s Healthcare product group will be part of Lexington’s business portfolio and will write business on an admitted and non-admitted basis with both wholesale and retail brokers. 
  • Limits will be available for both primary and excess coverage.
Professional Liability
AIG NA General Insurance’s Architects and Engineers product group will be part of Lexington’s business portfolio and continue to write business on an admitted and non-admitted basis with wholesale and retail brokers. 
  • Limits will be available for both primary and excess coverage.
Property Solutions / ART Group
AIG NA General Insurance’s Property Solutions / ART group will be part of Lexington’s business portfolio and continue to write business on an admitted and non-admitted basis with wholesale and retail brokers. 
  • Focus will remain on non-mainstream and complex underwriting, such as flood, parametric insurance and real estate finance insurance.
Programs and Group Captives
AIG NA General Insurance’s Programs and Group Captives units will be part of Lexington’s business portfolio and continue to provide insurance solutions on an admitted and non-admitted basis for both wholesale and retail brokers.  

For more information, please read our risk appetite guides and FAQs.

As our partners, we are committed to being your preferred provider of insurance solutions. The realignment of our business distribution underscores our commitment to provide dedicated resources for providing you with best-in-class insurance products and insurance solutions that meet your clients’ insurance requirements going forward.

We are grateful in advance for your continued business, which we value. If you have any questions, please contact your AIG representative or any of us.

Regards,
David McElroy
CEO, Lexington Insurance Company
AIG
Ken Riegler
President of Field and Underwriting Management
AIG North America General Insurance


The terms AIG, Lexington and Lexington London refer to American International Group, Inc. property and casualty insurance operations, including related property and casualty business divisions but not to any specific subsidiary insurance company.
 
Lexington Insurance Company, an American International Group, Inc. company, is the leading U.S.-based surplus lines insurer. American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. AIG common stock is listed on the New York Stock Exchange.

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

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