Expedia Picks AIG to Sell Travel Insurance on its Websites
March 02 2018 - 9:07AM
Dow Jones News
By Leslie Scism
American International Group Inc. said it has been selected to
sell travel insurance to customers of Expedia Inc.'s websites, part
of AIG's larger effort to earn more revenue from consumers.
Expedia's Brand Expedia Group, one of the world's biggest
travel-site operators, said the pact would make AIG's Travel Guard
offerings available to people booking flights, hotels, cars,
cruises and other travel on its sites. Those include Expedia.com,
CheapTickets, Orbitz and Travelocity. Financial terms weren't
disclosed.
Expedia said it would expand the AIG offerings to its global
websites following the U.S. launch. In the U.S., AIG is replacing a
U.S. unit of Dutch insurer Aegon NV. Internationally, Expedia now
uses German insurer Allianz SE, Expedia said. Those insurers
couldn't immediately be reached for comment.
Aon PLC's Affinity Travel Practice will continue to provide
advisory services to Expedia and handle claim services in the U.S.,
Expedia said. Aon has worked on the travel program for 15
years.
AIG Chief Executive Brian Duperreault is seeking ways to expand
the global insurance conglomerate rather than return excess cash to
shareholders in the form of stock buybacks. The Expedia pact
follows AIG's January agreement to acquire Validus Holdings Ltd.
for $5.56 billion.
After that deal, Mr. Duperreault said he would continue to hunt
for acquisitions because there is "white space" that can be filled
in across the global operations. In particular, he has mentioned
life-insurance internationally, and sales of policies to small and
midsize U.S. businesses.
AIG and other insurers of businesses have been struggling to
raise premium rates on many product lines over the past several
years. The price squeeze has lessened somewhat in recent months in
the wake of more than $100 billion in insured damage industrywide
from hurricanes and fires in 2017. But the resulting premium-rate
increases aren't broad-based, and they haven't been as strong as
initially expected, analysts say.
AIG is hardly a newcomer in selling to consumers. It is one of
the U.S.'s biggest providers of homeowners coverage to wealthy
households, and is prominent in sales of life insurance and
annuities to individuals.
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.
Write to Leslie Scism at leslie.scism@wsj.com
(END) Dow Jones Newswires
March 02, 2018 08:52 ET (13:52 GMT)
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