ACE to Acquire Fireman’s Fund High Net Worth Personal Lines Business from Allianz
December 18 2014 - 8:00AM
Business Wire
ACE Limited (NYSE: ACE) today announced it has signed a
definitive agreement to acquire the Fireman’s Fund high net worth
personal lines insurance business in the United States from Allianz
for $365 million. The acquisition expands ACE’s position as one of
the largest high net worth personal lines insurers in the U.S.
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 $891 million in personal
lines gross written premiums and ranked third among insurers
serving the U.S. 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,” said 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 organizations 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.
About ACE Group
ACE Group is one of the world’s largest multiline property and
casualty insurers. With operations in 54 countries, ACE provides
commercial and personal property and casualty insurance, personal
accident and supplemental health insurance, reinsurance and life
insurance to a diverse group of clients. ACE Limited, the parent
company of ACE Group, is listed on the New York Stock Exchange
(NYSE: ACE) and is a component of the S&P 500 index. Additional
information can be found at: www.acegroup.com.
Cautionary Statement Regarding
Forward-Looking Statements:
All forward-looking statements made in this press release,
related to the acquisition of the Fireman’s Fund high net worth
personal lines business, potential post-acquisition performance or
otherwise, reflect ACE’s current views with respect to future
events, business transactions and business performance and are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such statements involve risks and
uncertainties, which may cause actual results to differ materially.
The acquisition has not closed, its completion is subject to
certain conditions and it is not certain that it will be completed.
Similarly, statements related to ACE’s high net worth personal
lines performance, our ability to absorb that business into our
own, and its performance after we complete the acquisition are also
subject to risks and uncertainties. These statements could prove
incorrect if the acquired business were to perform differently than
currently expected by ACE or if anticipated expense-related
efficiencies are not realized. More generally, the businesses of
ACE and Fireman’s Fund’s high net worth personal lines business
could be affected by competition, pricing and policy provision
trends, the levels of new and renewal business achieved, the
frequency of unpredictable catastrophic events, actual loss
experience, uncertainties in the reserving or settlement process,
integration activities, new theories of liability, judicial,
legislative, regulatory and other governmental developments,
litigation tactics and developments, investigation developments and
actual settlement terms, the amount and timing of reinsurance
recoverable, credit developments among reinsurers, rating agency
action, possible terrorism or the outbreak and effects of war, and
economic, political, regulatory, insurance and reinsurance business
conditions, as well as management’s response to these factors.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the dates on
which they are made. ACE undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
ACE LimitedMedia: Jeffrey Zack, 212-827-4444,
jeffrey.zack@acegroup.comInvestors: Helen Wilson, 441-299-9283,
helen.wilson@acegroup.com
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