Arch Insurance North America Receives Regulatory Approval for $1.4bn Acquisition of Allianz’s US Assets

Arch Insurance North America, a part of Arch Capital Group, has received regulatory approval for its $1.4bn acquisition of the US assets of Allianz. The deal, announced in April 2024, includes the acquisition of Allianz’s midcorp and entertainment insurance businesses, including certain specialty insurance programs from Allianz Global Corporate & Specialty (AGCS).

The acquisition is set to be completed on 1 August 2024, subject to the fulfillment of standard closing conditions. The businesses being acquired are currently under Fireman’s Fund Insurance Company and its subsidiaries, with a collective gross premium written in 2023 amounting to $1.7bn.

Upon completion of the deal, approximately 500 employees, including underwriting, claims, and other professional staff, will become part of Arch Insurance. Arch Insurance, known for its property, casualty, and specialty insurance products, reported $5.8bn in gross premium written in North America for 2023.

Arch Insurance North America CEO Matt Shulman expressed excitement about the acquisition, stating that it will significantly expand their presence in the US middle market, a targeted growth area for Arch. He also mentioned that the transaction will enhance their distribution relationships, broaden their product suite, and expand their ability to participate in underwriting-intensive middle-market lines. Additionally, the acquisition includes a market-leading entertainment business that complements Arch Insurance’s existing portfolio of specialty products.

In May 2024, Arch Insurance International launched a parametric event insurance solution. This product aims to provide claims payments for event cancellations or postponements, catering to the needs of various regional events in the UK and Europe, such as conferences, exhibitions, and music and sports events. The offering includes both traditional indemnity coverage and a parametric option, allowing for claims settlement up to a predetermined limit.

Overall, the acquisition of Allianz’s US assets by Arch Insurance North America marks a significant expansion of their presence in the US middle market and adds a market-leading entertainment business to their portfolio. The completion of the deal on 1 August 2024 will bring about changes in the workforce and further strengthen Arch Insurance’s position in the industry.