Arch closes in on purchase of Allianz unit

Arch Insurance North America has received regulatory approval for its $450 million purchase of the US mid-sized corporate and entertainment insurance business of Allianz. 

Arch, a subsidiary of Bermuda-based Arch Capital, said it expects the acquisition to close on August 1. 

Arch announced in April that it planned to buy the business, which is written by the Fireman's Fund Insurance Company.

Arch it estimated the capital cost of the business will be approximately $1.4 billion.

The business wrote $1.7 billion of gross premium written in 2023 and there are approximately 500 individuals supporting the business, including underwriting, claims and other professional staff, who, are expected to become Arch Insurance employees. 

“The acquisition of the MidCorp business meaningfully expands our presence in the US middle market, a targeted growth area for Arch,” Matt Shulman, CEO for Arch Insurance North America, said then. “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.”

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