Allianz Group's carrier for large corporate and specialty insurance, Allianz Global Corporate & Specialty SE (AGCS), announced the sale of its U.S. MidCorp and Entertainment insurance to Arch Insurance North America.
The insurance business is underwritten through AGCS's Fireman's Fund subsidiaries, and Arch will be assuming about $2 billion of its loss reserves. The transaction is expected to result in $1.4 billion of total transaction value for Allianz.
"This strategic step for our U.S. business allows us to leverage our strengths in these important market segments, where we have deep expertise in addressing our clients' most complex risks," said Tracy Ryan, AGCS Chief Executive Officer for North America and member of AGCS's Board of Management in a news release statement. "We are proud of our employees who have served our U.S. MidCorp and Entertainment clients and brokers over the years. We are confident that they will be a strong addition to Arch, ensuring continuity for our partners."
About 500 employees are expected to transfer from AGCS to Arch following the transaction, which is expected to close sometime in the later half of 2024. AGCS plans to focus on its Large Corporate and Specialty business moving forward.
