Arch in Allianz business takeover | Insurance business America
The $450 million deal will expand Arch’s product range
Insurance News
By Ryan Smith
Arch Insurance North America announced that it has entered into a master transaction agreement to acquire the U.S. MidCorp and Entertainment businesses of Allianz Global Corporate & SPecialty SE (AGCS). The $450 million cash deal includes select specialty insurance programs.
Arch estimates its capital needs to support the acquired companies at approximately $1.4 billion, the company said in a news release.
The companies acquired in the transaction will be underwritten by Fireman’s Fund Insurance Company and its subsidiaries, Arch said. They totaled $1.7 billion in gross written premiums in 2023. Approximately 500 of the companies’ employees are expected to join Arch’s workforce as part of the transaction.
“The acquisition of the MidCorp business significantly expands our presence in the U.S. middle market, a targeted growth area for Arch,” said Matt Shulman, CEO of Arch Insurance North America. “This transaction will enhance our distribution relationships, expand our product offerings and expand our ability to participate in these insurance-intensive middle market lines. We are also pleased to add a market-leading entertainment business that complements Arch Insurance’s existing portfolio of specialist products.”
“We are proud of our employees who have served our U.S. MidCorp and entertainment clients and brokers over the years,” said Tracy Ryan, AGCS CEO for North America and member of the AGCS Board of Directors. “We are confident they will be a strong addition to Arch and ensure continuity for our partners.”
Arch Insurance offers property and specialty insurance products for all market segments. The company reported gross written premiums of approximately $5.8 billion in North America last year.
“Combining this platform, broad customer relationships and talented employee base with Arch’s capabilities creates an attractive mid-market company 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 are proud of our customer-focused, inclusive culture and look forward to leveraging the experience and expertise of our new colleagues as we continue to raise the bar and deliver on our brand promise of Pursuing Better Together.”
Do you have anything to say about this story? Let us know in the comments below.
similar posts
Stay up to date with the latest news and events
Join our mailing list, it’s free!
Source link
2024-04-05 15:32:30
www.insurancebusinessmag.com
