Arch in Allianz enterprise acquisition

Arch Insurance North America has introduced that it has entered right into a grasp transaction settlement to amass the US MidCorp and Entertainment companies from Allianz Global Corporate & SPecialty SE (AGCS). The $450 million money deal contains choose specialty insurance coverage packages.

Arch estimates its capital necessities to help the acquired companies can be roughly $1.4 billion, the corporate mentioned in a information launch.

The companies being acquired within the deal are written by Fireman’s Fund Insurance Company and its subsidiaries, Arch mentioned. They collectively totaled $1.7 billion of gross written premium in 2023. About 500 workers of the companies are anticipated to hitch Arch’s employees as a 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,” mentioned 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,” mentioned Tracy Ryan, AGCS CEO for North America and member of the AGCS board of administration. “We are confident that they will be a strong addition to Arch, ensuring continuity for our partners.”

Arch Insurance gives P&C and specialty insurance coverage merchandise throughout market segments. The firm wrote roughly $5.8 billion in gross premium in North America final 12 months.

Combining this platform, broad set of consumer relationships and gifted worker base with Arch’s capabilities creates a beautiful middle-market enterprise that ought to additional set up Arch Insurance as a market chief within the specialty insurance coverage house,” mentioned 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.’”

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