AIG sues former execs, new E&S insurer

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 strains insurer.

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

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

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

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

AIG stated within the lawsuit that Value and Driscoll entered into the non-compete agreements in trade for “vital 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 keeping with AM Greatest.

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 basic insurance coverage and now CFO at Dellwood. The swimsuit additionally alleges that in his remaining month at AIG, Connolly forwarded confidential data to his private electronic mail tackle and solicited AIG workers to hitch Dellwood, AM Greatest 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 basic 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 informed AM Greatest that the corporate “won’t abide” using its belongings to “unfairly compete.”

“AIG is searching 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 obligation, and unfair competitors,” the spokesman stated.

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

Dellwood informed AM Greatest that it could not touch upon lively litigation.

Have one thing to say about this story? Tell us within the feedback beneath.