American International Group said it has finalized an agreement with private equity firm Stone Point Capital to form Private Client Select (PCS) Insurance Services.

PCS will be an independent managing general agent serving the high-net-worth and ultra-high-net-worth market. PCS is expected to start doing business in the third quarter, AIG said.

AIG’s Private Client Group (PCG) business will move to the new PCS platform and brand.

Terms of the transaction, first announced in February, were not disclosed.

At the end of 2021, AIG CEO Peter Zaffino spoke about moving AIG’s high-net-worth homeowners business out of the admitted market due to high frequency and severity of catastrophe losses. In mid-2022, Zaffino reported that AIG had exited the admitted personal property homeowners market in certain states, with a plan to set up something like PCS, supported by third-party capital.

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

Also in February, Stone Point acquired 20 percent of insurance broker Truist for about $2 billion.