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 large calls “illegal misappropriation” of commerce secrets and techniques by former AIG executives who left to type the newly launched extra and surplus traces insurer.

The lawsuit was filed in opposition to Dellwood and former AIG executives Thomas Connolly, Kean Driscoll and Michael Value, based on a report by AM Finest. The go well with 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 via Sept. 30, 2023, based on AM Finest. The settlement additionally prohibited Value from soliciting AIG workers via 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 info or disparaging AIG, AM Finest reported.

Driscoll’s settlement with AIG allegedly barred him from competing with the corporate, violating his fiduciary responsibility of loyalty, or soliciting AIG workers via March 3, 2024. It additionally included a everlasting ban on soliciting AIG clients utilizing confidential info, disparaging AIG or disclosing confidential info, AM Finest 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 info 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, based on AM Finest.

AIG claimed that Value and Driscoll violated their non-compete agreements by recruiting Connolly, previously the insurance coverage large’s chief monetary officer of North American common insurance coverage and now CFO at Dellwood. The go well with additionally alleges that in his closing month at AIG, Connolly forwarded confidential info to his private e-mail deal with and solicited AIG workers to hitch Dellwood, AM Finest reported.

“As senior AIG executives, the person defendants had entry to confidential info that’s proprietary to AIG concerning nearly each side of AIG’s North America common insurance coverage enterprise, together with technique, finance, accounting and underwriting,” the lawsuit stated. “Defendants are utilizing AIG’s confidential info to conduct Dellwood’s enterprise.”

A spokesman for AIG advised AM Finest that the corporate “is not going to abide” the usage of its belongings to “unfairly compete.”

“AIG is looking for to halt what it believes to be defendants’ illegal misappropriation of AIG’s commerce secrets and techniques and confidential info, breaches of contract, breaches of fiduciary responsibility, and unfair competitors,” the spokesman stated.

The lawsuit claims that AIG has sustained damages together with “lack of income, helpful enterprise, income, future income, and worker morale and goodwill,” based on a Reuters report.

Dellwood advised AM Finest that it might not touch upon lively litigation.

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