AGCS to focus on U.S. Large Corporate and Specialty insurance with sale of U.S. MidCorp and Entertainment businesses to Arch Insurance North America

Allianz Global Corporate & Specialty SE ('AGCS'), Allianz Group's carrier for large corporate and specialty insurance, today announced an agreement to sell its U.S. MidCorp and Entertainment insurance businesses, underwritten via its Fireman's Fund subsidiaries, to Arch Insurance North America, part of Arch Capital Group Ltd. ('Arch'), for an agreed cash payment of $450 million reflecting the franchise value of the business. The transaction includes risk transfer for Allianz, as Arch is assuming approximately $2 billion of loss reserves associated with the business. The cash payment from Arch, together with an estimated $1.0 billion of Allianz capital supporting the business, is expected to result in $1.4 billion of total transaction value for Allianz Group. Approximately 500 employees from Allianz are expected to transfer to Arch as part of the agreement.

Going forward, AGCS U.S. will focus on its Large Corporate and Specialty business, where U.S. brokers and clients benefit from Allianz's strong global and industry-specific capabilities across underwriting, claims, and risk consulting, including multinational insurance programs and alternative risk transfer.

"This strategic step for our U.S. business allows us to leverage our strengths in these important market segments, where we have deep expertise in addressing our clients' most complex risks," said Tracy Ryan, AGCS Chief Executive Officer for North America and member of AGCS's Board of Management."We are proud of our employees who have served our U.S. MidCorp and Entertainment clients and brokers over the years. We are confident that they will be a strong addition to Arch, ensuring continuity for our partners."

The businesses subject to sale are underwritten by Fireman's Fund Insurance Company and its subsidiaries, namely American Automobile Insurance Company, Chicago Insurance Company, Interstate Fire & Casualty Company, and National Surety Corporation and collectively totaled $1.7 billion of gross premium written in 2023

Subject to regulatory approvals, this transaction is expected to close in the second half of 2024.

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Allianz SE published this content on 05 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 April 2024 13:24:41 UTC.