ACE Limited is to acquire the Fireman’s Fund high net worth personal lines insurance business in the United States from Allianz for USD365 million.
The acquisition expands ACE’s position as one of the largest high net worth personal lines insurers in the US.
The Fireman’s Fund business will be integrated into ACE’s existing high net worth personal lines business, ACE Private Risk Services, which offers a broad range of coverage including homeowners, automobile, umbrella and excess liability, collectibles and yachts. In 2013, Fireman’s Fund had USD891 million in personal lines gross written premiums and ranked third among insurers serving the US high net worth consumer market.
“High net worth personal lines remains a strategic growth area for ACE and ACE Private Risk Services has quickly established itself in this space,” says Evan G Greenberg, Chairman and Chief Executive Officer, ACE Limited. “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. We are proud to welcome their valued clients and producers to our company.
“ACE will also benefit from the addition of one of the industry’s most respected personal lines organisations including talented claims, underwriting, actuarial and marketing professionals. The Fireman’s Fund team joining us has a deep understanding of the high net worth market and strong relationships with the agents and brokers serving this discerning clientele. In addition, because we’ve built ACE Private Risk Services for growth, we have a robust infrastructure that gives us the opportunity to absorb the business, leverage our existing operations and systems and scale this business efficiently and immediately.”
The acquisition includes the renewal rights for new and existing business, reinsurance of all existing reserves, and access to an extensive network of approximately 1,100 agents and brokers. The transaction, which is subject to customary closing conditions, including insurance regulatory approval, is expected to be completed in the second quarter of 2015 and be accretive to earnings immediately.
