AIG will acquire the renewal rights to most of Everest Group’s global retail insurance portfolio in a $2 billion deal that expands its customer base without taking on Everest’s past liabilities, marking a major step in CEO Peter Zaffino’s transformation of the company.

Insurance giant AIG is set to acquire the renewal rights for the majority of Everest Group’s global retail insurance portfolio worth $2 billion in premiums, sources with intimate knowledge of the deal told Fortune .

The agreement with Everest, one of the world’s largest reinsurance and insurance solutions firms, is part of AIG CEO Peter Zaffino ’s transformation effort at the century-old insurance company. It will also ease Everest’s loss reserve management issues after it underestimated claim costs in its U.S. casual

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