Allianz Sells Fireman's Fund To ACE

By Ulrike Dauer

Allianz SE (ALV.XE), Europe's biggest insurer by market value, on Thursday said it is selling the retail operations of its U.S. property/casualty insurer Fireman's Fund to ACE Ltd. (ACE) for $365 million.

ACE will integrate the retail operations into its existing business that's already focused on high-net worth retail insurance, as is the business it bought. It will also get the contract renewal rights of the business, the reinsurance of existing liabilities and access to a network of 1,100 agents and brokers. The business sold had $891 million in gross premiums written in 2013.

The sale, which Allianz expects to be completed in the second quarter of 2015, completes the restructuring of Allianz's loss-making U.S. property/casualty insurance operations announced in September.

Under the restructuring plan, Fireman's Fund commercial business lines are being integrated in Allianz's industrial insurance business Allianz Global Corporate & Specialty, or AGCS. In future, the business with combined revenues of more than $3 billion will be marketed under the Allianz brand.

Allianz also said it plans to eventually separate and wind down Fireman's Fund legacy business through a new standalone company, San Francisco Re. The legacy business to be managed down by San Francisco Re will include asbestos and environmental policies, legacy worker's compensation and construction defect liabilities, it said.

Write to Ulrike Dauer at [e-mail]

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