Arch Capital Group’s Acquisition of Allianz’s U.S. Mid-Market and Entertainment Insurance Business for $450 Million: Expanding Arch’s U.S. Middle Market Presence

Bermuda-based Arch Capital Group Ltd. has agreed to purchase the U.S. mid-market and entertainment insurance business of German insurer Allianz Global Corporate & Specialty SE for $450 million. As part of the transaction, Arch Insurance North America will assume about $2 billion in loss reserves associated with the business, according to a statement from Allianz SE. The business being sold to Arch totaled approximately $1.7 billion in gross premiums in 2023.

“The cash payment from Arch, together with an estimated $1.0 billion of Allianz capital supporting the business, is expected to result in $1.4 billion of total transaction value for Allianz Group,” said a statement from Allianz SE.

The deal is expected to result in the transfer of about 500 AGCS staff to Arch Insurance North America. Going forward, AGCS’ U.S. focus will be on large commercial and specialty business, according to a statement from AGCS’ CEO Matt Shulman: “The acquisition of the midcorp business meaningfully expands our presence in the U.S. middle market, a targeted growth area for Arch.” The transaction is expected to close in the second half of this year, according to Shulman’s statement.

Arch Capital Group Ltd.’s share price rose about 3% in morning trading on Friday as news broke of the acquisition agreement with AGCS’ U.S.-based insurance business underwritten through Fireman’s Fund by Allianz Global Corporate & Specialty SE for $450 million.

It should be noted that this article was rewritten based on the original article provided and it may not be entirely unique due to similarities with the original article.

In 1991, Allianz bought Petaluma, California-based Fireman’s Fund for about $3