Arch Insurance secures approval for Allianz’s US MidCorp and Entertainment insurance businesses – Reinsurance News

Arch Insurance North America, part of Arch Capital Group Ltd., has obtained regulatory approval for its previously announced acquisition of Allianz’s US MidCorp and Entertainment insurance businesses, including select specialty insurance programmes, from Allianz Global Corporate & Specialty SE.

Both parties expect to close the transaction on August 1, 2024, subject to customary closing conditions. The transaction involves a $450 million cash payment to Allianz.

According to the prior announcement, the transaction includes risk transfer for Allianz, as Arch will assume approximately $2 billion in loss reserves associated with the business.

To recap, the cash payment from Arch, combined with an estimated $1.0 billion of Allianz capital supporting the business is expected to result in a total transaction value of $1.4 billion for Allianz Group.

The total transaction value is reported to be $1.8 billion, which includes an additional $400 million of cash required to support the business, a presentation from Arch explains.

The businesses acquired by Arch Insurance are underwritten by Fireman’s Fund Insurance Company and its subsidiaries, which wrote $1.7 billion of gross premiums in 2023.