Allianz closes sale of Fireman’s Fund Personal Insurance and advances North American P&C restructuring
- Sale of Fireman’s Fund Personal Insurance business to ACE Ltd. closed on April 1
- Allianz Global Corporate & Specialty advances integration of Fireman’s Fund commercial business with expanded footprint in North America and globally
PRESS RELEASE - New York. April 1, 2015
Allianz Global Corporate & Specialty (AGCS) today announced the close of the sale of the Fireman’s Fund Insurance Company (FFIC) personal lines insurance business in the United States, focused on high net worth customers, to ACE Ltd. The sale, which closed on schedule as previously announced and is valued at US$365 million, includes the renewal rights and reinsurance of existing liabilities. In addition, ACE has hired over 500 Fireman’s Fund employees who support this business. Coverage for existing FFIC policyholders will continue until their policies are non-renewed at expiration in accordance with state law, at which time ACE is expected to make offers of coverage to most Fireman’s Fund policyholders.
The close of the sale represents one of several milestones Allianz has achieved in the first three months of 2015 as it restructures its North America business through the integration of the FFIC commercial business into AGCS, the global industrial insurer of Allianz Group. This integration has roughly doubled the size of AGCS in North America to around US$3 billion in gross written premiums and will expand AGCS’s product range, both within the US market and internationally.
“I am pleased to see that the sale of the Personal Business was closed so quickly and efficiently,” said Art Moossmann, Member of the Board of AGCS and CEO of AGCS North America*. “I want to thank our brokers, agents and policyholders who worked with us so patiently during this time. Also, I want to thank the hundreds of employees who have not only worked so tirelessly to make this happen but have moved forward the many other changes taking place in North America.”
Building presence in North America under the Allianz brand
The combined AGCS/FFIC commercial business will significantly expand Allianz’s range of services to commercial customers in the North American market under its own brand. As well as appointing the leadership team for the integrated company, AGCS has announced that it will launch a new Financial Lines range of products, led by New York City-based Paul Schiavone, including Directors’ and Officers’, Professional Indemnity (PI), and Errors and Omissions (E&O) to complement the established Professional Liability teams coming to AGCS as part of the Fireman’s Fund Commercial integration.
In addition, the FFIC Commercial portfolio includes a strong range of products for small and mid-size businesses, covering Farm & Ranch, Mid Corporate Property and Casualty, Small Businesses, Programs, and Crop, as well as its market-leading Entertainment business. AGCS will market these under the Allianz brand alongside its existing offering of large corporate and specialty products, including Property, Casualty, Construction, International Insurance Programs, Energy, Aviation and Marine, using the combined FFIC/AGCS distribution network across North America.
“With the sale of FFIC Personal Insurance complete, AGCS can focus on supporting our clients and business partners with our new broader range of services and solutions right across North America – and now with one face to market and one leadership team under Art Moossmann,” explained Chris Fischer Hirs, CEO of AGCS SE. “This move not only presents AGCS with significant opportunities for our expertise-driven business products and services in the important North American market, but also internationally through our global network.”
*Legal names of AGCS North America companies: Allianz Global Risks US Insurance Company, Allianz Underwriters Insurance Company and AGCS Marine Insurance Company.
Media contact Fireman's Fund Insurance Company
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