AGCS to focus on U.S. Large Corporate and Specialty insurance with sale of Fireman’s Fund insurance businesses to Arch

Allianz Global Corporate & Specialty SE (AGCS), the Allianz Group's carrier of large corporate and specialty insurance, has announced that it will focus on US large corporate and specialty insurance by selling its US midcorp and entertainment insurance businesses to Arch Insurance North America. Will do. ,

AGCS has agreed to sell Arch for an agreed cash payment of $450 million to businesses underwritten by Fireman Fund Insurance Company and its subsidiaries.

The transaction involves a transfer of risk to Allianz, as Arch is assuming loss reserves of approximately $2 billion associated with the business.

Overall, the cash payment from Ark, combined with an estimated $1.0 billion of Allianz capital supporting the business, is expected to have a total transaction value of $1.4 billion for the Allianz Group.

According to the announcement, approximately 500 Allianz employees are expected to transfer to Arc as part of the transaction.

Going forward, AGCS US will focus on its larger corporate and specialty business as part of its Allianz commercial strategy, the company said.

“This strategic move to our U.S. business allows us to leverage our strengths in these important market segments, where we have the most value for our customers,” said Tracy Ryan, AGCS chief executive officer for North America and AGCS member. “There is deep expertise in addressing complex risks.” board of Management.

He added: “We are proud of our employees who have served our US Midcorp and Entertainment clients and brokers for years. We are confident that they will be a strong addition to Ark, ensuring continuity for our partners.

The transaction is expected to close in the second half of 2024 and is subject to regulatory approval.