AIG Signs Deal With United Airlines for Travel Insurance
October 18 2017 - 09:08AM
Dow Jones News
By Leslie Scism
American International Group Inc. on Wednesday said it reached
an agreement with United Airlines to offer travel insurance to the
airline's customers.
The arrangement in part reflects AIG Chief Executive Brian
Duperreault's plan to put his stamp on the company with expansion
through growth of existing businesses and acquisitions.
While AIG is known as one of the world's biggest sellers of
property-casualty insurance to businesses, Mr. Duperreault has
identified the company's global Personal Insurance business as an
area where growth opportunities exist, as well as its
life-insurance and retirement-services business.
The agreement with United is a multiyear deal to offer travel
insurance to the airline's customers in the U.S. and 15 other
countries. The New York-based insurer has had arrangements with
smaller airline carriers in the U.S. for years, and some big ones
in Europe, Asia and the Middle East.
Financial terms weren't disclosed.
From 2009 through 2012, AIG divested tens of billions of dollars
of businesses and assets to repay its nearly $185 billion bailout
during the financial crisis. More recently, it has been shrinking
the business-insurance unit as a way to shed poorly performing
accounts and improve profit margins.
Industrywide, insurers have been struggling for a few years to
raise rates on many business-insurance product lines amid a glut in
capital. Analysts believe the recent spate of hurricanes will usher
in rate increases for certain product lines, because some of the
excess capital will be used for claims payments. But few are
predicting broad-based increases.
Jeff Rutledge, CEO at AIG Travel, said the United arrangement
springs from technology investments that AIG made in recent years
that would allow "the use of predictive analytics to enable AIG to
bring robust data insight directly to the traveler's insurance
offer."
AIG will provide coverage for trip cancellation, baggage loss
and emergency medical services.
The company's travel insurance business dates from 1939, when a
unit began offering simple automotive and personal-effects coverage
for tourists and business travelers.
AIG's Personal Insurance business includes auto, property and
accident insurance, and its Private Client Group serves wealthy
clients. AIG also is one of the largest U.S. warranty providers for
consumer electronics and appliances.
Write to Leslie Scism at leslie.scism@wsj.com
(END) Dow Jones Newswires
October 18, 2017 08:53 ET (12:53 GMT)
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