ZURICH--(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.
Source: ACE Limited