By Suzanne Barlyn
NEW YORK (Reuters) - American International Group Inc (N:AIG) said on Wednesday it is preparing to launch a new business through Lloyd's of London Ltd [SOLYD.UL] that will serve U.S. high net worth clients.
The business, which will operate as part of the Lloyd's of London global insurance marketplace, will support AIG's Private Client Group and provide additional new coverages to those clients, AIG said.
AIG expects the business, dubbed "Syndicate 2019," to generate up to $1 billion in gross premiums to the Lloyd's market, the company said. The business is set to start writing coverage effective Jan. 1, 2020, subject to regulators' approval, AIG said.
The move comes as Lloyd's, a 330-year-old insurance market, is undergoing an effort to modernize its operations and expand its U.S. reach under chief executive John Neal, who took charge of Lloyd's in 2018.
Lloyd's kicked off its U.S. strategy in June at a New York dinner for top insurance and brokerage executives. The company had planned to meet with AIG and other major insurers that week about potential opportunities for selling more of their insurance products through Lloyd's, Neal told Reuters at the time.