Allianz Global Corporate & Specialty SE (‘AGCS’), a subsidiary of the Allianz Group, recently announced that it has agreed to sell its U.S. MidCorp and Entertainment insurance businesses to Arch Insurance North America, a subsidiary of Arch Capital Group Ltd. (‘Arch’). The sale reflects the franchise value of the business, and the total transaction value for Allianz Group is estimated to be $1.4 billion, including the cash payment from Arch and approximately $1.0 billion of Allianz capital supporting the businesses being sold.
Moving forward, AGCS U.S. will focus solely on its Large Corporate and Specialty business, allowing it to concentrate on market segments where it has deep expertise in addressing clients’ most complex risks. U.S. brokers and clients will continue to benefit from Allianz’s global and industry-specific capabilities across underwriting, claims, and risk consulting, including multinational insurance programs and alternative risk transfer solutions.
Tracy Ryan, AGCS Chief Executive Officer for North America, stated that the move allows the company to leverage its strengths in important market segments while praising the employees who have served U.S. MidCorp and Entertainment clients and brokers over the years for their work. The employees who are transferring to Arch will bring continuity for partners as they ensure seamless integration into Arch’s operations.
The businesses being sold are underwritten by Fireman’s Fund Insurance Company and its subsidiaries, with a total of $1.7 billion gross premium written in 2023. The transaction is subject to regulatory approvals and is expected to close in the second half of 2024
