(Bloomberg) -- American International Group Inc., the largest commercial insurer in the U.S. and Canada, bought a controlling interest in NSM Insurance Group as it seeks to expand niche offerings.
NSM collects more than $500 million in annual premiums from industries including aviation, sports and fitness, microbreweries and professional liability for lawyers, dentists, architects and engineers, Conshohocken, Pennsylvania-based NSM said Monday in a statement. AIG’s investment will help the specialty company accelerate acquisitions, NSM said.
Terms weren’t disclosed and the transaction is expected to be completed within 30 days, New York-based-based AIG said in a separate statement. The insurer purchased the stake from NSM management and ABRY Partners, a Boston-based private-equity firm. NSM has managed some of AIG’s programs for more than 15 years, according to the statement.
“AIG brings to NSM strong financial backing and A+ rated paper, which will power our acquisitions and internal growth plans,” NSM Chief Executive Officer Geof McKernan said in AIG’s statement. Fitch Ratings lifted AIG’s outlook to positive this month as the company simplifies operations.
AIG climbed 0.7% to $55.68 at 8:57 a.m. in early trading in New York. The shares slid 1.3% this year through March 13.
--With assistance from Doni Bloomfield in New York.
Copyright 2018 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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