Arch Insurance North America, a faction of Arch Capital Group Ltd., revealed on Friday that it has agreed to terms to acquire the U.S. MidCorp and Entertainment insurance businesses from Allianz Global Corporate & Specialty SE. This deal also encompasses certain specialized insurance programs, and it is for a cash consideration to Allianz of $450 million.
Arch approximates its capital requirement to fund this venture to be roughly $1.4 billion. This acquisition will further boost Arch Insurance's presence in the middle- market property and casualty sector. Besides, the addition of a leading Entertainment business is set to supplement its existing specialty products portfolio.
The insurance services procured in this agreement are rendered by Fireman's Fund Insurance Company and its subsidiaries. These businesses collectively amassed premiums of $1.7 billion in 2023.
An approximate team of 500 professionals, including underwriting, claims, and other staff, are expected to join Arch Insurance as part of this transaction. Arch Insurance presently extends a diverse range of property, casualty, and specialty insurance options across market segments, and it recorded around $5.8 billion in gross premiums in North America in 2023.
This transaction is anticipated to finalize in the latter half of 2024, pending necessary regulatory approvals.
