MUNICH (dpa-AFX) - Property and casualty insurer ACE Limited (ACE) said Thursday that it has agreed to acquire the Fireman's Fund high net worth personal lines insurance business in the U.S. from German insurer Allianz SE (AZSEY.PK) for $365 million. The company noted that the acquisition will bolster its position as one of the largest high net worth personal lines insurers in the U.S.
The acquisition includes the renewal rights for new and existing business, reinsurance of all existing reserves, and access to a network of about 1,100 agents and brokers.
ACE expects the transaction to be completed in the second quarter of 2015 and be accretive to its earnings immediately.
ACE said it will integrate the Fireman's Fund business into its existing high net worth personal lines business, ACE Private Risk Services. In 2013, Fireman's Fund had $891 million in personal lines gross written premiums and ranked third among insurers serving the U.S. high net worth consumer market.
Evan Greenberg, Chairman and Chief Executive Officer of ACE said, 'High net worth personal lines remains a strategic growth area for ACE and ACE Private Risk Services has quickly established itself in this space. The addition of the personal lines business of Fireman's Fund will reinforce and advance ACE's position as a premier provider of insurance to the high net worth market.'
In a separate statement, Allianz said that the move to sell the business follows its decision earlier in 2014 to reposition its property & casualty or P&C insurance business in the U.S. by integrating the Fireman's Fund Insurance Company or FFIC commercial business into Allianz Global Corporate & Specialty or AGCS, the global industrial insurer of Allianz Group.
Allianz noted that the sale will enable it to focus on building its commercial P&C business across North America under the Allianz brand, creating a business with combined revenues that are expected to total over $3 billion, based on gross premiums written in 2013.
ACE is trading at $113.75, up $1.06 or 0.94 percent on a volume of 143,896 shares.
On Frankfurt's Xetra, Allianz shares are trading at 137.50 euros, up 2.95 euros or 2.19 percent on a volume of 1.23 million shares.
Copyright RTT News/dpa-AFX