AIG to acquire $2B in Everest Group retail insurance premiums

[Workers Arrive At The Offices Of Troubled Insurance Company AIG]
Dan Kitwood/Getty Images News

American International Group (NYSE:AIG [https://seekingalpha.com/symbol/AIG]) has agreed to buy [https://seekingalpha.com/pr/20281024-aig-to-acquire-renewal-rights-for-a-majority-of-everest-group-s-retail-insurance-portfolios] the renewal right for most of Everest Group's (NYSE:EG [https://seekingalpha.com/symbol/EG]) retail insurance portfolios globally, representing total premiums of about $2B, it said on Monday.

Everest (NYSE:EG [https://seekingalpha.com/symbol/EG]), which earlier turned in worse-than-expected [https://seekingalpha.com/news/4509008-everest-group-non-gaap-eps-of-7_54-misses-by-6_98-revenue-of-4_32b-beats-by-490m] Q3 earnings, shares gapped down 6% in after-hours trading, while AIG (NYSE:AIG [https://seekingalpha.com/symbol/AIG]) edged up 0.6%.

Exposure to all liabilities will remain with Everest (EG [https://seekingalpha.com/symbol/EG]), which will also continue to administer claims with respect to its policies.

"We expect these renewal rights transactions to drive incremental growth in our general insurance portfolio, and we will be able to write these policies within our existing balance sheet with no incremental capital required,” said AIG Chairman and CEO Peter Zaffino.

Terms of the agreements were not disclosed. Aside from the European Union, AIG (AIG [https://seekingalpha.com/symbol/AIG]) expects to start writing policies for existing Everest (EG [https://seekingalpha.com/symbol/EG]) clients on Jan. 1, 2026. The company expects to expand this work to Everest’s EU portfolios in the Q1 2026.

MORE ON AMERICAN INTERNATIONAL GROUP, EVEREST GROUP

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* American International Group, Inc. (AIG) Presents At KBW Insurance Conference 2025 Transcript [https://seekingalpha.com/article/4819244-american-international-group-inc-aig-presents-at-kbw-insurance-conference-2025-transcript]
* Everest Group: Progress Despite Pricing Fears [https://seekingalpha.com/article/4818777-everest-group-progress-despite-pricing-fears]
* Insurers brace for potential claims linked to First Brands bankruptcy - report [https://seekingalpha.com/news/4503683-insurers-brace-for-potential-claims-linked-to-first-brands-bankruptcy-report]
* Old Republic upgraded, Everest Group, EverQuote downgraded at Raymond James [https://seekingalpha.com/news/4497173-old-republic-upgraded-everest-group-everquote-downgraded-at-raymond-james]