Dear Valued Partner,
We are pleased to announce that ACE will acquire the Fireman’s Fund Insurance Company (FFIC) high net worth personal lines insurance business in the United States.* This agreement follows the decision by Allianz earlier in 2014 to integrate the FFIC commercial business into Allianz Global Corporate & Specialty (AGCS), thus completing the future positioning for the Allianz P&C business in US.
Personal insurance continuity The acquisition includes the renewal rights for new and existing business, reinsurance of liabilities, and access to an extensive network of 1,100 agents and brokers. The transaction, which is subject to legal and regulatory approval, is expected to be completed in the second quarter of 2015.
The sale of the FFIC personal insurance business will give it a larger scale and ensure its continuity for you and your policyholders. Like Fireman’s Fund, ACE is dedicated to strong agency partnerships. Its service, underwriting and claims capabilities will be further enhanced by an expanded network of offices across the country that will include San Diego; St. Louis; Bethlehem, PA; Basking Ridge, NJ; Chicago; and Salem, VA.
A focused commercial footprint This move allows Allianz 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 written premium in 2013. The new leadership team for this combined FFIC/AGCS business was announced last week, with AGCS’s Art Moossmann becoming CEO & President of both AGCS North America (AGCS NA) and FFIC from January 1, 2015.
The commercial business will be integrated into AGCS NA, with all active product lines moving to AGCS. This ensures continuity of service for existing commercial policyholders and agents, while also presenting one brand and team to customers across all segments of the US P&C market. AGCS will also seek to build on the FFIC product range globally, targeting opportunities to use FFIC’s specialist knowledge of Entertainment and Mid-Corporate insurance in international markets.
In parallel, subject to legal and regulatory approval, it is the intention to ultimately separate and consolidate the legacy business of FFIC, including legacy asbestos & environment exposures, legacy worker’s compensation, and legacy construction defect liabilities, into a stand-alone company, San Francisco Re.
What’s next? The sale of the FFIC personal insurance business is expected to close in the second quarter of 2015. The integration of the FFIC commercial lines into AGCS will also take place in stages over the course of next year. On January 1, 2015, it will be business as usual, but in the weeks and months to come, you can expect to hear more from us. We hope to hear from you so we can listen to your feedback and together manage as smooth a transition as possible.