Allied World Assurance Co. Holdings AG and Hudson Structured Capital Management Ltd. are funding insurance startup Vault, which focuses on high-net-worth clients, The Insurance Insider reported, citing sources.

Vault, led by former American International Group Inc. private client president and Tower Hill CEO Charles Williamson, will offer products that include high-value homeowners' and specialty coverages. The insurance startup will be headquartered in New York. However, its core operating platform will initially be operated from St. Petersburg, Fla.

The insurance startup will be structured under Vault Holdings, with a reciprocal exchange to write admitted business in Florida and a separate facility for excess and surplus lines risks through MGA Vault Custom Risk. Vault Holdings is majority owned by its management and Allied World, while Hudson Structured holds a 10% stake in the company, according to the report.

Capital investment in the reciprocal exchange includes a total commitment of $100 million. The initial $50 million is divided between Allied World and Hudson Structured, and the Fairfax Financial Holdings Ltd.-owned company provided the remaining $50 million.

Williamson has reportedly formed a team of more than 25 people for Vault. He is said to have recruited former AIG executives, including Peter Piotrowski as chief claims officer, Mary Qualls as CUO, Nick Quamran Muqtadir as CFO, Brandy Klenner as chief actuary and Stacy Warren as chief sales and experience officer. Steve Bitterman was appointed chief risk services officer.