American International Group Inc. has agreed to buy York Township-based Glatfelter Insurance Group.
The deal, expected to close in the fourth quarter of 2018, matches one of the region’s largest insurance brokerages with an international powerhouse.
Founded in 1919, AIG sells insurance and other financial products around the world.
Glatfelter Insurance is among the largest privately owned insurance brokerages in the U.S., with clients across the country and in Canada.
It was founded in 1951 by the late Arthur Glatfelter, who carved out a niche in finding insurance for volunteer fire departments in Pennsylvania. Today the firm offers a range of insurance lines and occupies a prominent Colonial-style office building off Leader Heights Road in York Township.
The company, currently led by CEO Anthony Campisi, posted revenue in 2017 of $321.1 million, up from $306.8 million in 2016, according to Business Journal records.
After the deal closes, Campisi will report to David McElroy, the incoming CEO of AIG’s Lexington business.
The deal is subject to customary closing conditions, including regulatory approvals. Terms of the agreement were not disclosed.
“We have been doing program business with AIG for 40 years and have developed a very special relationship based on mutual trust and a strong underwriting culture. We consider the leadership at AIG to be among the most talented in the insurance industry,” Campisi said in a statement.
Based in New York, AIG posted net income of $937 million in the second quarter of 2018, down from $1.1 billion for the same period in 2017. Gross premiums rose to nearly $8.7 billion for the second quarter of 2018, up from $8.3 billion for the year-ago period.
“Glatfelter Insurance Group is an outstanding strategic fit with AIG, bringing high-quality specialty programs business capabilities, a demonstrated track record of strong underwriting results and proprietary program management technology to our general insurance operations,” Brian Duperreault, president and CEO of AIG, said in a statement. “Glatfelter’s highly talented leadership team will strengthen our efforts to deliver long-term, profitable growth for AIG.”