By Tess Stynes
American International Group Inc. agreed to acquire a
controlling stake in NSM Insurance Group from private-equity firm
ABRY Partners and NSM management.
The deal is the latest in a string of acquisitions by AIG that
aim to diversify its offerings to customers. Most recently, AIG
agreed to acquire Laya Healthcare, Ireland's second-largest
health-insurance provider, in January.
Financial terms of the NSM Insurance deal, which is expected to
close within 30 days, weren't provided.
NSM Insurance Chief Executive Geof McKernan said the transaction
brings strong financial backing to the insurer and will support its
acquisition- and internal-growth plans.
ABRY Partners acquired its stake in the insurance program
administrator in January 2012.
Conshohocken, Pa.-based NSM Insurance has 300 employees.
AIG has been in transition since former Chief Executive Robert
Benmosche retired in September after five years at the helm, during
which the company repaid one of the biggest bailout packages of the
financial crisis. Under Mr. Benmosche, the once-sprawling
financial-services conglomerate sold many of its units, including
its aircraft-leasing business and two international life-insurance
businesses, to focus on its property-casualty insurance operations
and a U.S. life-insurance and retirement-services unit.
Write to Tess Stynes at tess.stynes@wsj.com
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