By Neetha Mahadevan
FRANKFURT--German insurer Allianz SE said Wednesday it will
restructure its U.S. property/casualty business Fireman's Fund,
after struggling to bring losses under control.
Allianz said it will integrate Fireman's Fund's industrial and
commercial insurance arm into the specialty insurer unit Allianz
Global Corporate & Specialty, or AGCS. The combined business is
expected to generate more than $3 billion in revenues, based on
gross written premiums in 2013.
"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," Allianz said
about the retail arm of the fund, which accounts for about one
third of the revenues of Fireman's Fund's business. For 2014,
Fireman's Fund expects revenues of $2.8 billion.
Allianz bought the California-based Fireman's Fund in 1991,
after which its marine business was integrated into AGCS in 2009.
This integration brought nearly $600 million in annual gross
premiums to AGCS.
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.
Write to Neetha Mahadevan at neetha.mahadevan@wsj.com