Allianz has announced it will integrate the Fireman’s Fund commercial property-casualty business into Allianz Global Corporate & Specialty (AGCS), while the future of Fireman’s Fund profitable personal lines business is uncertain.

As part of the integration, the Fireman’s Fund commercial property-casualty business will be marketed under the Allianz brand.

“AGCS concentrates on large corporations or specialty risks, particularly those with multi-national exposures, and Fireman’s Fund focuses more on domestic exposures with declared areas of industry and product specialization. So it really made sound strategic sense to bring both of those together and integrate them into AGCS,” says Robyn Hahn, chief marketing officer of Fireman’s Fund Insurance Company. “The AGCS integration is going to offer agents many benefits—global reach, recognized expertise and AA-rated financial strength.”

Based on gross written premiums in 2013, the combined AGCS and Fireman’s Fund commercial p-c business is expected to total more than $3 billion in revenue. Hahn notes that Allianz and Fireman’s Fund already share many of the same commercial insurance distribution partners. “All things are being considered in terms of the footprint and expertise required to continue to provide support for all industry segments,” she says. 

With the repositioning of the commercial p-c insurance in the U.S., various strategic options are under consideration in order to build scale for Fireman’s Fund personal lines business. The personal lines book represents approximately one-third of Fireman’s Fund business by gross premiums.

“This business is attractive and has a strong reputation in the marketplace because we are a leader in the high-net worth client segment,” Hahn says. “While we consider our options, our current strategy is not changing. We’re going to continue to provide the excellent service levels to our agents and brokers and policyholders, and we’re going to continue focusing on growing that portfolio.”

Hahn says there is no timeframe for the decision on the future of the personal lines business.

“Agents should tell customers that as a company, we will continue to protect our reputation with the high net-worth client, and we’ll be relentless in focusing on service and their overall customer experience with the Fireman’s Fund brand,” Hahn says. “We take that very seriously.”

Katie Butler is IA editor in chief.