(Bloomberg) – American International Group Inc., the largest commercial insurer in the U.S. and Canada, agreed to join with Hamilton Insurance Group and the Two Sigma Investments hedge fund firm to start a business focusing on coverage for small- to medium-sized enterprises.

"The joint venture will combine Two Sigma's proprietary data science and technology platform, Hamilton's technology and underwriting expertise" and AIG's scale, the companies said Tuesday in a statement, without disclosing terms.

The deal reunites AIG with Brian Duperreault, a former executive at the New York-based company who went on to lead Ace Ltd. and insurance broker Marsh & McLennan Cos. before starting Hamilton with Two Sigma more than two years ago. The hedge fund firm, founded by David Siegel and John Overdeck in 2001, relies on computer models to bet on securities markets. Two Sigma has also sought to bring increased data analysis to insurance underwriting, a strategy that AIG Chief Executive Officer Peter Hancock has emphasized at his company.