AIG sues former execs, new E&S insurer


AIG sues former execs, new E&S insurer | Insurance coverage Enterprise America

The insurance coverage big says former execs engaged in “illegal misappropriation”

AIG sues former execs, new E&S insurer

Insurance coverage Information

Ryan Smith

American Worldwide Group is suing the newly shaped Dellwood Insurance coverage Group in a bid to cease what the insurance coverage big calls “illegal misappropriation” of commerce secrets and techniques by former AIG executives who left to kind the newly launched extra and surplus traces insurer.

The lawsuit was filed towards Dellwood and former AIG executives Thomas Connolly, Kean Driscoll and Michael Value, in line with a report by AM Finest. The swimsuit alleges that Value and Driscoll – who left AIG on June 30, 2023, and March 3, 2024, respectively, violated non-compete agreements that had been in drive throughout the time Dellwood was being established.

Value’s non-compete settlement barred him from competing with AIG or interfering with its buyer relationships by way of Sept. 30, 2023, in line with AM Finest. The settlement additionally prohibited Value from soliciting AIG workers by way of June 30, 2024, the lawsuit alleged.

The settlement additionally included a everlasting ban on soliciting AIG’s prospects in circumstances the place doing so would require the use or disclosure of the corporate’s confidential data or disparaging AIG, AM Finest reported.

Driscoll’s settlement with AIG allegedly barred him from competing with the corporate, violating his fiduciary responsibility of loyalty, or soliciting AIG workers by way of March 3, 2024. It additionally included a everlasting ban on soliciting AIG prospects utilizing confidential data, disparaging AIG or disclosing confidential data, AM Finest reported.

AIG stated within the lawsuit that Value and Driscoll entered into the non-compete agreements in alternate for “important consideration,” together with long-term incentive plan awards.

“On data and perception, Value and Driscoll breached their obligations to AIG lengthy earlier than their noncompetes expired,” the lawsuit stated. “Certainly, Dellwood’s personal publicly filed paperwork reveal that the Dellwood authorized entity was shaped in Delaware no later than Dec. 28, 2023, and registered to do enterprise in New Jersey no later than Jan. 30, 2024.”

Dellwood introduced its launch earlier this month, in line with AM Finest.

AIG claimed that Value and Driscoll violated their non-compete agreements by recruiting Connolly, previously the insurance coverage big’s chief monetary officer of North American normal insurance coverage and now CFO at Dellwood. The swimsuit additionally alleges that in his closing month at AIG, Connolly forwarded confidential data to his private e mail handle and solicited AIG workers to affix Dellwood, AM Finest reported.

“As senior AIG executives, the person defendants had entry to confidential data that’s proprietary to AIG relating to just about each facet of AIG’s North America normal insurance coverage enterprise, together with technique, finance, accounting and underwriting,” the lawsuit stated. “Defendants are utilizing AIG’s confidential data to conduct Dellwood’s enterprise.”

A spokesman for AIG advised AM Finest that the corporate “is not going to abide” using its belongings to “unfairly compete.”

“AIG is looking for to halt what it believes to be defendants’ illegal misappropriation of AIG’s commerce secrets and techniques and confidential data, breaches of contract, breaches of fiduciary responsibility, and unfair competitors,” the spokesman stated.

The lawsuit claims that AIG has sustained damages together with “lack of income, beneficial enterprise, earnings, future earnings, and worker morale and goodwill,” in line with a Reuters report.

Dellwood advised AM Finest that it will not touch upon lively litigation.

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