AIG, Hamilton, Two Sigma form joint venture

American International Group Inc., Hamilton Insurance Group, Ltd., and affiliates of Two Sigma Investments, LP announced recently that they have entered into a non-binding memorandum of understanding to form a joint venture that will establish a technology-enabled, customer-centric insurance platform for the Small to Medium-sized Enterprise (SME) market.

The joint venture will combine Two Sigma’s proprietary data science and technology platform, Hamilton’s technology and underwriting expertise in the SME market, and AIG’s SME capabilities and global presence to become a leader in the USD76 billion North American SME market.  The venture is expected to deliver pricing and servicing using predictive analytics and an easy-to-use customer interface.  Additionally, Two Sigma will partner with both AIG and the joint venture to develop specialised asset allocation solutions for the unique characteristics of insurance investment portfolios.  

Hamilton Chairman & CEO Brian Duperreault will serve as chairman of the Board of the joint venture. Richard Friesenhahn, currently executive vice president of U.S. Casualty Lines at AIG, will assume the position of chief executive officer.