American International Group, Inc. announced plans to gain a controlling stake in NSM Insurance Group, a Conshohocken, PA-based commercial property and casualty insurance firm with over $400,000,000 in premiums written every year.
The deal is facilitated by ABRY Partners and NSM management, but details remain undisclosed. The transaction should take place within 30 days, according to the
Wall Street Journal.
Analysts note that this procurement follows in a series of acquisitions for
AIG, as the firm furthers its goal of diversifying offerings with more unique products.
NSM commands a niche consumer market, and will continue its management of third party programs for AIG. The move represents an expansion into specialty lines for AIG; NSM earns more than $500 million in annual premiums from industries like aviation, sports and fitness, microbreweries and professional liability for lawyers, dentists, architects and engineers,
“NSM’s track record, highly innovative approach to program structuring, and strong reputation enhances AIG’s ability to deliver the comprehensive products and services customers need to successfully manage risk,” Robert Schimek, AIG Senior Vice President and CEO of the Americas, told
Insurance and Financial Advisor. “We look forward to working with the exceptional management team at NSM to further grow this important business.”
NSM sees the acquisition as an investment that will allow it to pursue new avenues of growth while retaining its entrepreneurial organizational culture.
The company employs 300 people worldwide.
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