Two former executives with American International Group (AIG) have launched a nationwide excess and surplus lines (E&S) insurance holding company.
Michael Price and Kean Driscoll announced the formation of Dellwood Insurance Group, which they said will be dedicated to property/casualty wholesale brokers with an emphasis on small and middle enterprise (SME) risks.
New Jersey-based Dellwood is backed by RenaissanceRe, PartnerRe, Starr Insurance, and Central Insurance, along with more than $250 million in capital. Individual investors in the entity include Dominic Addesso, David Delaney, VJ Dowling, Jim Hays, and principals from Stone Point Capital, according to the announcement.
“The P&C industry is at an inflection point, and we are poised to actively participate in the most attractive insurance market conditions in over 20 years,” commented Price, who is chief executive officer of the new company. “Having access to the intellectual and financial firepower of our strategic investors will serve us and our broker partners well as we navigate the challenging E&S marketplace.”
Driscoll will serve as president and chief underwriting officer. “The inflationary elements of the insurance cycle affect all businesses large and small. However, the SME segment is particularly challenging for our wholesale partners. Dellwood’s purpose-built underwriting platform will lead with a full suite of insurance products for the SME commercial market,” Driscoll said, adding that Dellwood seeks to appeal to wholesale brokers who need alternative approaches, particularly for smaller, hard-to-place risks.
Price spent almost five years from 2018 to 2023 at AIG in New York in various roles with General Insurance including CEO, chief operating officer, and deputy chief underwriting officer. Prior to AIG, he spent more than nine years at Arch Insurance in senior positions in underwriting and operations. Earlier in his career, he worked at The Hartford.
Driscoll’s background includes serving as CEO and president of Validus Holdings from 2012 to 2019. He spent 2019 to 2023 at AIG in New York as global chief underwriter, global head of reinsurance strategy and global property chief underwriting officer.
E&S Outlook
The E&S market continued to grow in 2023, with premium reaching nearly $73 billion, according the Wholesale & Specialty Insurance Association (WSIA). Premiums in 2013 reflected a 14.6% increase over the record-breaking numbers of 2022 when premiums grew more than 24% to $63 billion.
Insurance industry rating agency AM Best late last year upped its view of the E&S market to positive as the market continues to absorb business from the admitted market., and in light of its strong underwriting results and continued high demand.
According to recent reporting by Insurance Journal’s Andrea Wells, while the rising cost of insurance for small businesses is pushing entrepreneurs to retain more risk and reevaluate their insurance partners, the surplus lines market is helping to fill gaps.
The high percentage of underinsured small enterprises also presents opportunities, Insurance Journal reported. In 2023, a record-breaking 5.5 million new business applications were filed, according to the US Census Bureau.
Addesso will serve as Dellwood’s non-executive chairman. He currently serves in advisory roles with Clearview Risk Holdings, Core Specialty Insurance Holdings, BMS Re and BMS Group. Howden Tiger Capital Markets & Advisory served as Dellwood’s financial advisor and Foley & Lardner served as Dellwood’s legal advisor.
Topics Excess Surplus AIG
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