AIG is reducing cyber insurance limits as cost of coverage soars
FILE PHOTO: A sign is displayed over the entrance to the AIG headquarters offices in New York’s financial district, January 9, 2013. REUTERS/Brendan McDermid/File Photo/File Photo
(Reuters) -American International Group Inc is tightening terms of its cyber insurance, noting that its own premium prices are up nearly 40% globally, with the largest increase in North America, the U.S. insurer’s chief executive said on Friday.
«We continue to carefully reduce cyber limits and are obtaining tighter terms and conditions to address increasing cyber loss trends, the rising threat associated with ransomware and the systemic nature of cyber risk generally,» CEO Peter Zaffino said on a conference call with analysts, according to a transcript produced by Refinitiv.
AIG (NYSE:AIG)’s planned sale of part of its life and retirement business through an initial public offering is likely in the first quarter of 2022, Zaffino said. The company had previously aimed for the fourth quarter of the current year for the IPO.
The company currently plans to offer more than 9.9% of its life and retirement unit in the IPO but said the size is not yet clear.
Private equity firm Blackstone (NYSE:BX) will acquire a 9.9% stake for $2.2 billion in AIG’s Life Retirement business, the companies had said last month, in an all-cash transaction.
AIG said on Friday that it has flexibility to sell more than 19.9% of the business due to gains from the sale of affordable housing coupled with other factors.
AIG shares were up 4.1% at $50.64 in early trade on Friday.
On Thursday, AIG posted second-quarter profit that beat estimates, driven by strong performance in its general insurance and life and retirement units.