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

Arch Capital

05/04/2024 16:23

(Adds details about deal's value, unit's premium volumes;
paragraphs 2-3)
       BERLIN, April 5 (Reuters) - Allianz  ALVG.DE  agreed to
sell Fireman's Fund, its U.S. insurance unit for mid-sized
corporations and entertainment industry clients, to
Bermuda-based Arch Insurance  ACGL.O  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 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.
    

 (Reporting by Alexander Huebner, writing by Andrey Sychev;
editing by Matthias Williams and Richard Chang)
 ((andrey.sychev@thomsonreuters.com;))