The transaction will enable further expansion
into the middle-market property and casualty segment.
Arch Insurance North America (Arch Insurance), part of Arch
Capital Group Ltd. (Nasdaq: ACGL) (Arch), today announces it has
entered into a master transaction agreement to acquire the U.S.
MidCorp and Entertainment insurance businesses, including select
specialty insurance programs, from Allianz Global Corporate &
Specialty SE (AGCS) for a $450 million cash consideration to
Allianz. Arch estimates its capital requirement to support the
business will be approximately $1.4 billion.
The businesses being acquired are written by Fireman’s Fund
Insurance Company and its subsidiaries and collectively totaled
$1.7 billion of gross premium written in 2023. Approximately 500
individuals supporting the business, including underwriting, claims
and other professional staff, are expected to become Arch Insurance
employees as part of the transaction.
“The acquisition of the MidCorp business meaningfully expands
our presence in the U.S. middle market, a targeted growth area for
Arch,” said Matt Shulman, CEO for 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 U.S. MidCorp
and Entertainment clients and brokers over the years,” said Tracy
Ryan, AGCS Chief Executive Officer for North America and member of
AGCS’s Board of Management. “We are confident that they will be a
strong addition to Arch, ensuring continuity for our partners.”
Arch Insurance currently provides a wide range of property,
casualty and specialty insurance options across market segments and
wrote approximately $5.8 billion of gross premium in North America
in 2023. This transaction builds upon Arch Insurance’s North
America business that has delivered double-digit topline growth for
five consecutive years.
“Combining this platform, broad set of client relationships and
talented employee-base with Arch’s capabilities creates an
attractive middle-market business that should further establish
Arch Insurance as a market leader in the specialty insurance
space,” said Nicolas Papadopoulo, CEO for 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.”
This transaction is expected to close in the second half of 2024
and is subject to regulatory approvals.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are
acting as financial advisors to Arch, and Willkie Farr &
Gallagher LLP is serving as the Company’s legal advisor.
An Arch slide presentation regarding the master transaction
agreement and the related transactions described will be posted to
the Presentations section of our website,
https://ir.archgroup.com/news-events-presentations/presentations/default.aspx.
About Arch Insurance North America
Arch Insurance North America, part of Arch Capital Group Ltd.,
includes Arch’s insurance operations in the United States and
Canada. Business in the U.S. is written by Arch Insurance Company,
Arch Specialty Insurance Company, Arch Property & Casualty
Insurance Company and Arch Indemnity Insurance Company. Business in
Canada is written by Arch Insurance Canada Ltd.
About Arch Capital Group Ltd.
Arch Capital Group Ltd. (Nasdaq: ACGL) is a publicly listed
Bermuda exempted company with approximately $21.1 billion in
capital at Dec. 31, 2023. Arch, which is part of the S&P 500
Index, provides insurance, reinsurance and mortgage insurance on a
worldwide basis through its wholly owned subsidiaries.
About Allianz Commercial
Allianz Commercial is the center of expertise and global line of
Allianz Group for insuring mid-sized businesses, large enterprises
and specialist risks. Among our customers are the world’s largest
consumer brands, financial institutions and industry players, the
global aviation and shipping industry as well as family-owned and
medium enterprises which are the backbone of the economy. We also
cover unique risks such as offshore wind parks, infrastructure
projects or Hollywood film productions. Powered by the employees,
financial strength, and network of the world’s #1 insurance brand,
we work together to help our customers prepare for what’s ahead:
They trust us in providing a wide range of traditional and
alternative risk transfer solutions, outstanding risk consulting
and Multinational services as well as seamless claims handling.
Allianz Commercial brings together the large corporate insurance
business of Allianz Global Corporate & Specialty (AGCS) and the
commercial insurance business of national Allianz Property &
Casualty entities serving mid-sized companies. We are present in
over 200 countries and territories either through our own teams or
the Allianz Group network and partners. In 2023, the integrated
business of Allianz Commercial generated around €18 billion in
gross premium globally. https://commercial.allianz.com/
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for forward−looking statements. This release or any
other written or oral statements made by or on behalf of Arch
Capital Group Ltd. and its subsidiaries may include forward−looking
statements, which reflect the Company’s current views with respect
to future events and financial performance. All statements other
than statements of historical fact included in or incorporated by
reference in this release are forward−looking statements.
Forward−looking statements can generally be identified by the
use of forward−looking terminology such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe" or "continue" or
their negative or variations or similar terminology.
Forward−looking statements involve the Company’s current assessment
of risks and uncertainties. Actual events and results may differ
materially from those expressed or implied in these statements. A
non-exclusive list of the important factors that could cause actual
results to differ materially from those in such forward-looking
statements includes the following: adverse general economic and
market conditions; increased competition; pricing and policy term
trends; fluctuations in the actions of rating agencies and the
Company’s ability to maintain and improve its ratings; investment
performance; the loss of key personnel; the adequacy of the
Company’s loss reserves, severity and/or frequency of losses,
greater than expected loss ratios and adverse development on claim
and/or claim expense liabilities; greater frequency or severity of
unpredictable natural and man-made catastrophic events, including
pandemics such as COVID-19; the impact of acts of terrorism and
acts of war; changes in regulations and/or tax laws in the United
States or elsewhere; ability to successfully integrate, establish
and maintain operating procedures as well as integrate the
businesses the Company has acquired or may acquire into the
existing operations; changes in accounting principles or policies;
material differences between actual and expected assessments for
guaranty funds and mandatory pooling arrangements; availability and
cost to the Company of reinsurance to manage our gross and net
exposures; the failure of others to meet their obligations to the
Company; an incident, disruption in operations or other cyber event
caused by cyber attacks, the use of artificial intelligence
technologies or other technology on the Company’s systems or those
of the Company’s business partners and service providers, which
could negatively impact the Company’s business and/or expose the
Company to litigation; and other factors identified in our filings
with the U.S. Securities and Exchange Commission (SEC).
The foregoing review of important factors should not be
construed as exhaustive and should be read in conjunction with
other cautionary statements that are included herein or elsewhere.
All subsequent written and oral forward−looking statements
attributable to us or persons acting on the Company’s behalf are
expressly qualified in their entirety by these cautionary
statements. The Company undertakes no obligation to publicly update
or revise any forward−looking statement, whether as a result of new
information, future events or otherwise.
Source — Arch Capital Group Ltd. Tag —
arch-corporate-insurance
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240405551743/en/
Arch Media Contact: Greg Hare Arch Capital Services LLC
ghare@archgroup.com
Stephanie Perez Arch Capital Services LLC
stperez@archgroup.com
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