American International Group has finalised its agreement with funds managed by private equity firm Stone Point Capital LLC to form Private Client Select Insurance Services, an independent managing general agency.

AIG said the new MGA would serve high-net worth and ultra-high-net-worth markets.

AIG announced in February its Private Client Group business would move to this new independent platform and be rebranded.

Subject to customary regulatory approvals, PCS is expected to begin producing business in the third quarter.

The terms of the transaction have not been disclosed.

In February, Peter Zaffino, the chairman and CEO of AIG commented: “As previously disclosed, AIG has been exploring structures that, over time, will allow PCG to be supported by third-party capital providers, including AIG and its innovative syndicate at Lloyd’s, referred to as Syndicate 2019.

“By partnering with a world-class private equity firm like Stone Point, we can maximise the strengths of this business and improve product offerings to better serve the high and ultra-high-net-worth markets.”