Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Allianz sells US mid-size corporate insurance unit to Arch Capital

Published 04/05/2024, 09:57 AM
Updated 04/05/2024, 11:57 AM
© Reuters. The logo of Allianz SE is displayed on the company building in Puteaux at the financial and business district of La Defense near Paris, France, March 13, 2024. REUTERS/Gonzalo Fuentes/File Photo

BERLIN (Reuters) -Allianz agreed to sell Fireman's Fund, its U.S. insurance unit for mid-sized corporations and entertainment industry clients, to Bermuda-based Arch Insurance for $450 million in cash, the German insurer said on Friday.

Arch Capital had to assume $2 billion in loss provisions, from which the Munich-based group expects to gradually release around $1 billion, bringing the deal's total value to $1.4 billion, Allianz (ETR:ALVG) added.

The 500-person unit accounted for around a third of the 2023 premium volume of the U.S. corporate insurance division Allianz Commercial of $5.3 billion.

The transaction is part of Allianz's new strategy to focus on large corporate and specialty businesses in the U.S. instead.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.