Transformative Developments at Hamilton Insurance Group. May 15, 2017

Transcription

1 Transformative Developments at Hamilton Insurance Group May 15, 2017

2 Announcements at a glance!» Brian Duperreault has resigned from his position as Chairman and CEO of Hamilton Insurance Group to accept the position of President and CEO of AIG, effective immediately.» Hamilton s Board of Directors has appointed Bill Freda as Chairman and David Brown as Interim Group CEO, effective immediately. Following the Board s June meeting, a search for a Group CEO will be undertaken.» AIG, Hamilton and Two Sigma Insurance Quantified (TSIQ) have signed a Memorandum of Understanding (MOU) in which: AIG will acquire Hamilton Insurance Group s US insurance platform. Attune will expand its market to target a market segment representing up to $150 billion in annual gross written premiums. Hamilton USA s ownership in Attune will transfer to Hamilton Insurance Group. Hamilton Re and AIG will enter into a reinsurance strategic partnership in which Hamilton Re will be provided with the opportunity to participate in an increased volume of AIG s ceded reinsurance. The relationship is expected to result in material premium growth for Hamilton Re and provides AIG an alternative source of reinsurance capital. AIG and TSIQ will establish a partnership in which TSIQ will develop a technologyenabled platform supporting a broad spectrum of commercial insurance at AIG. 2

3 Hamilton + AIG + TSIQ = a transformative partnership!» The proposed expansion of this unique partnership represents tremendous upside in achieving our mission: with Attune expanding to target a market segment representing up to $150 billion in business, and with the transfer of Attune s ownership to Hamilton Insurance Group; with the strategic reinsurance partnership between Hamilton Re and AIG; and with TSIQ focused on identifying opportunities to transform underwriting.» While we are losing a much-revered leader at Hamilton, we are gaining a powerful ally at AIG. Brian Duperreault helped lay the foundation at Hamilton and will consider Hamilton a valued partner as AIG President and CEO.» Hamilton is well positioned to continue to execute its mission. We have a superlative executive team, a committed Board of Directors representing a cross section of disciplines from the insurance, finance and technology industries, and some of the best industry talent in the business. In David Brown, we have an experienced industry CEO who has been with the Company since inception. He is an ideal resource to lead Hamilton through the transition period. 3

4 What does this mean for Hamilton Insurance Group?!» Hamilton s mission of writing the future of risk remains the same while Interim Group CEO David Brown oversees the transitional period between the signing of the MOU and the conclusion of negotiations. A search for a Group CEO will begin after Hamilton s Board meets in June. Internal and external candidates will be considered.» Our partnership with Two Sigma is stronger than ever.» TSIQ is focused on working closely with Hamilton and its business units to maximize the benefits of data-driven underwriting.» Our MOU with AIG and TSIQ represents significant financial and business development opportunities. Hamilton USA s one-third ownership of Attune transfers to Hamilton Insurance Group. Attune is expanded to a $150 billion target business segment. Hamilton Re and AIG enter into a strategic reinsurance partnership that significantly expands Hamilton Re s access to AIG business and related data flow. 4

5 For Hamilton Re?!» Brian Duperreault is stepping down from the board of Hamilton Re.» Hamilton Re remains the Bermuda-based platform of Hamilton Insurance Group and continues to execute its business strategy, focused on its vision of being new kind of Tier 1 company.» Kathleen Reardon continues as CEO.» Current reinsurance relationships between Hamilton Re and Attune are unaffected by the MOU.» Under the terms of the MOU, Hamilton Re and AIG will enter into a reinsurance strategic partnership in which Hamilton Re will be provided with the opportunity to participate in an increased volume of AIG s ceded reinsurance. The relationship is expected to result in material premium growth for Hamilton Re and provides AIG an alternative source of reinsurance capital. 5

6 For Hamilton USA?!» At the conclusion of negotiations, Hamilton USA will become a stand-alone unit of AIG that will be used to develop a state of the art technology platform applying data science and analytics to transform underwriting.» During the transition period: Seraina Macia continues as CEO. The US platform will continue to execute the current business plan and prepare for its transition to AIG ownership. Employees continue to be employed by Hamilton. Plans to move to 120 Broadway will proceed. 6

7 For Attune?!» At the conclusion of negotiations, Hamilton USA s one-third ownership transfers to Hamilton Insurance Group.» Attune s target market expands to companies with annual revenues of up to $35 million, a market segment representing up to $150 billion in annual gross written premiums.» During the transition period: Brian Duperreault remains as Chairman. James Dobson will continue to report to the Board. Attune s business strategy will continue to be executed. A new Chairman will be identified. 7

8 For Hamilton at Lloyd s?!» Brian Duperreault steps down from the Board of Hamilton Underwriting Limited.» Dermot O Donohoe continues as CEO.» Current business strategy remains the same.» Hamilton at Lloyd s and TSIQ will continue to identify projects that will improve efficiency and client service in the Lloyd s market environment.» There is no impact on syndicate business planning for

9 Organization Charts! 9

10 Organization Charts! 10

11 Board of Directors!! 11

12