Fireman’s Fund commercial P&C business to become part of Allianz Global Corporate & Specialty

Allianz Global Corporate & Specialty (AGCS) is moving to strengthen its commercial property and casualty business in the United States by integrating the Fireman’s Fund commercial P&C business.

The combined AGCS and Fireman’s Fund commercial P&C business is expected to total more than $3 billion in revenues, based on gross written premiums in 2013, notes a statement Wednesday from AGCS, the global corporate insurance company of Allianz.

The Fireman’s Fund commercial P&C business focuses on declared areas of industry and product specialization (particularly those with domestic exposures across the U.S.) while AGCS concentrates on large corporations or specialty risks (particularly those with multinational exposures), the statement notes.

AGCS’s move to integrate the Fireman’s Fund commercial P&C business follows the 2009 transfer of its marine business to AGCS, an integration that brought almost US$600 million in annual gross premiums to AGCS. The transfer made AGCS one of the leading providers of specialty insurance in the U.S.

“The integration of the Fireman’s Fund commercial p&c business into AGCS allows Allianz to focus on opportunities in commercial insurance, operate under the Allianz brand and build upon the range of commercial P&C insurance solutions and relationships already successfully offered in the U.S. by AGCS,” Axel Theis, CEO of AGCS, says in the statement.

“This move gives our commercial p&c business greater direction and focus,” adds Andrew Torrance, CEO of Fireman’s Fund Insurance Company. “AGCS will offer many benefits to Fireman’s Fund’s clients and business partners in the U.S., with its global reach, recognized expertise and AA rated financial strength.”

AGCS reports that with the repositioning of the commercial P&C insurance in the U.S., various options are being considered to also build scale for the personal lines business of Fireman’s Fund.

Representing about a third of the Fireman’s Fund business by gross premiums (2013), the personal lines business is a leader in its market and enjoys healthy profitability, the statement adds.