Arch in Allianz business acquisition
Arch in Allianz business acquisition | Insurance Business America
Insurance News
Arch in Allianz business acquisition
$450 million deal will broaden Arch’s product suite
Insurance News
By
Ryan Smith
Arch Insurance North America has announced that it has entered into a master transaction agreement to acquire the US MidCorp and Entertainment businesses from Allianz Global Corporate & SPecialty SE (AGCS). The $450 million cash deal includes select specialty insurance programs.
Arch estimates its capital requirements to support the acquired businesses will be approximately $1.4 billion, the company said in a news release.
The businesses being acquired in the deal are written by Fireman’s Fund Insurance Company and its subsidiaries, Arch said. They collectively totaled $1.7 billion of gross written premium in 2023. About 500 employees of the businesses are expected to join Arch’s staff as part of the transaction.
“The acquisition of the MidCorp business meaningfully expands our presence in the US middle market, a targeted growth area for Arch,” said Matt Shulman, CEO of Arch Insurance North America. “This transaction will enhance our distribution relationships, broaden our product suite and expand our ability to participate in these underwriting-intensive middle-market lines. We are also excited to add a market-leading entertainment business that complements Arch Insurance’s existing portfolio of specialty products.”
“We are proud of our employees who have served our US MidCorp and Entertainment clients and brokers over the years,” said Tracy Ryan, AGCS CEO for North America and member of the AGCS board of management. “We are confident that they will be a strong addition to Arch, ensuring continuity for our partners.”
Arch Insurance provides P&C and specialty insurance products across market segments. The company wrote approximately $5.8 billion in gross premium in North America last year.
Combining this platform, broad set of client relationships and talented employee base with Arch’s capabilities creates an attractive middle-market business that should further establish Arch Insurance as a market leader in the specialty insurance space,” said Nicolas Papadopoulo, CEO of Arch Worldwide Insurance Group. “We take pride in our client-focused, inclusive culture and look forward to incorporating the experience and expertise of our new colleagues as we continue to raise the bar and fulfill our brand promise of ‘Pursuing Better Together.’”
Have something to say about this story? Let us know in the comments below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
