AIG Settles Lawsuit with Dellwood, Allows Some Claims to Proceed
American International Group (AIG) has reached an out-of-court settlement with Dellwood, an excess and surplus insurance firm started by former AIG executives. The lawsuit, which began in April 2024, has been voluntarily dismissed with prejudice.
AIG initially sued Dellwood and three former executives, alleging unlawful misappropriation of trade secrets and unfair competition. The company saw Dellwood as directly competitive with its own E&S operations and sought injunctive relief and damages. However, AIG dropped the former executives from the lawsuit, and a federal judge allowed some of AIG's claims against Dellwood to proceed, including allegations of misappropriation of trade secrets and unfair competition. Dellwood countered the lawsuit, arguing that AIG should not be allowed to claim a monopoly on the experience and general knowledge of its employees. The settlement details between AIG and Dellwood were not disclosed.
Dellwood received over $250 million in capital from investors, including RenaissanceRe, PartnerRe, and Starr Insurance, for the small- and middle-enterprise E&S market. Despite the settlement, AIG was allowed to proceed with claims that former employee Thomas Connolly acted as a 'double agent' for Dellwood while still employed with AIG.
