AIG settles suit against E&S insurer set up by former execs

American International Group Inc. has settled its unfair-competition and breach-of-employment-contract lawsuit against an excess and surplus lines insurer established by three former AIG executives.

A filing Thursday in federal court in Newark, New Jersey, in American International Group Inc. et al. v. Dellwood Insurance Group LLC said the rival insurers agreed to settle the case May 17 without costs awarded.

The details of the settlement were not disclosed. AIG declined to comment, and Dellwood did not immediately respond to a request for comment.

AIG sued Dellwood, Michael Price, Kean Driscoll and Thomas Connolly in April 2024, alleging that Mr. Price, former CEO of North America General Insurance at AIG, and Mr. Driscoll, former chief underwriting officer of the same unit, violated terms in their employment agreements when they formed the startup that launched in March 2024. AIG also alleged that Mr. Price and Mr. Driscoll unlawfully used its proprietary information when recruiting Mr. Connolly, who was then chief financial officer of North American Insurance.

The insurer voluntarily dismissed its claims against the former executives in May 2024. Dellwood moved to dismiss the lawsuit in July.

In March, U.S. District Judge Evelyn Padin of the District of New Jersey dismissed AIG’s claims for tortious interference with contract, aiding and abetting a breach of fiduciary duty and violating the U.S. Computer Fraud and Abuse Act by accessing AIG’s computers, but she said the allegations could be amended.

The judge allowed AIG’s claims for violating the Defend Trade Secrets Act and unfair competition to proceed.