Arch Insurance North America (Arch Insurance), a division of Arch Capital Group (Arch Capital), has signed a master transaction agreement to acquire the US assets of AGCS.  

The deal involves the sale of AGCS’ US MidCorp and entertainment insurance businesses, along with select specialty insurance programmes, for $450m in cash. 

Arch will take on around $2bn in loss reserves linked to the acquired operations.  

The total transaction value is $1.4bn, which includes the cash consideration and $1bn in capital support for the acquired assets.  

The businesses being acquired, underwritten by the Fireman’s Fund Insurance Company and its subsidiaries, generated a combined gross premium of $1.7bn in 2023.  

Around 500 staff members supporting these operations, including underwriters and claims professionals, are set to join Arch Insurance. 

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Last year, Arch Insurance, known for offering property, casualty and specialty insurance solutions, reported $5.8bn in gross premiums written in North America. 

AGCS US will now focus on its large corporate and specialty business. 

Arch Insurance North America CEO Matt Shulman said: “The acquisition of the MidCorp business meaningfully expands our presence in the US middle market, a targeted growth area for Arch. This transaction will enhance our distribution relationships, broaden our product suite and expand our ability to participate in these underwriting-intensive middle-market lines.  

“We are also excited to add a market-leading entertainment business that complements Arch Insurance’s existing portfolio of specialty products.” 

AGCS CEO for North America and member of AGCS’ board of management Tracy Ryan said: “This strategic step for our US business allows us to leverage our strengths in these important market segments, where we have deep expertise in addressing our clients’ most complex risks.”  

The deal is pending regulatory clearances, with completion due in the second half of 2024.  

Last month, Allianz Trade, the trade credit insurance arm of Allianz, collaborated with Nuvo, a B2B trade credit technology platform, to enhance trade credit insurance policy management for its clientele.