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.