Arch closes $450m deal with Allianz

Arch Insurance North America, part of Bermuda-based Arch Capital, has closed its acquisition of US midcorp and entertainment insurance businesses from Allianz.

The $450 million acquisition includes select specialty insurance programmes from Allianz Global Corporate & Specialty SE (AGCS). 

The acquired businesses are written by Fireman’s Fund Insurance Company and its subsidiaries and collectively totalled $1.7 billion of gross premium written in 2023. 

Nearly 500 Allianz MidCorp and Entertainment employees have joined Arch and will provide continuity to clients and brokers, the companies said. 

The new Arch midcorp and entertainment businesses will report to Mark Lange in a newly created role of chief middle market executive. Lange was previously chief strategy officer for Arch Insurance North America.

“We are thrilled to welcome these talented individuals to Arch and look forward to earning the trust of their existing clients and distribution partners,” said Matt Shulman, chief executive officer for Arch Insurance North America. “Under Mark’s leadership, we will continue to drive growth, deliver exceptional value to customers, create opportunities for our new colleagues and Pursue Better Together as a united team.”

Lange added: “I’m looking forward to working with this talented and experienced team to help build out Arch’s middle-market platform. One of our guiding principles throughout this transaction has been to emphasise continuity and to maintain a customer-centric mindset, and I know we’re all ready to hit the ground running.”

Goldman Sachs & Co and JP Morgan Securities acted as financial advisors to Arch, and Willkie Farr & Gallagher served as the Allianz’s legal advisor.

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