Allianz creates world's leading marine insurance provider

Allianz Global Corporate & Specialty, the industrial insurance arm of the Allianz Group, and Fireman's Fund Insurance Company, an Allianz general insurance unit in the United States, are combining their marine insurance businesses, confirming Allianz as the largest marine insurer in the world.

Allianz Global Corporate & Specialty
Munich / Novato, California, Aug 12, 2008

The two Allianz subsidiaries will be merging their marine portfolios to create one unified global marine insurance organization under the AGCS brand. Leading the combined initiative out of New York will be Art Moossmann, who is currently responsible for specialty insurance, including marine, at Fireman's Fund.

The AGCS marine business has underwriting hubs in all the key global marine centers including New York, Toronto, Paris, Hamburg, London and Singapore and is already one of the largest in the world in terms of capacity. Fireman's Fund Marine has established a reputation for its high quality of service across a well balanced and profitable portfolio. The global Allianz marine gross premiums total around 1.5 billion US dollars (of which AGCS will account for around one billion US dollars), making Allianz the largest marine insurer in the world with a significant share of the worldwide equivalent market of around 16.5 billion US dollars.

Single marine insurance approach
"This is an excellent opportunity," said Clement Booth, the Allianz SE board of management member responsible for both AGCS and FFIC. "It will enable us to further optimize our marine portfolio and expand our customer focused approach by being able to offer clients and brokers a wide range of products and services. It also allows us to focus on developing our US property and casualty business with Fireman's Fund."

Mike LaRocco, Fireman's Fund President and Chief Executive Officer, commented: "This move lets us concentrate on the domestic personal and commercial markets, where we see the most potential for profitable growth. In addition, this is a logical response to the needs of global marine clients and demonstrates our commitment within the Allianz Group to speak to customers with a single voice."

"Our customers will benefit from this combination," agreed AGCS Chief Executive Officer Axel Theis. "Now we will have an even wider global reach through a single marine insurance approach and a larger range of products and services to offer."

Marine insurance essential for international trade
With an unusually broad client base, the AGCS marine account covers the full spectrum of marine business - from ocean-going 'blue-water' vessels and international cargo shipments to private yachts, coastal and river craft as well as related services such as freight forwarders and logistics specialists. This account is not only diversified by risk type, but also covers a worldwide operational range.

In addition, AGCS's services extend beyond traditional marine insurance: the company offers specialist marine risk consultancy services, offering clients technical support for risk reduction 'in the field'. For example, AGCS's global team includes Master Mariners and logistics specialists who have advised on cases as unusual as tracking down cargo lost overboard on the high seas or to pirates in the Malacca Straits of South East Asia.

With an increased demand for international shipping, and over 90 percent of worldwide trade carried out by sea, marine insurance plays a key role in underpinning international trade.

From 1990 to 2006, seaborne cargo tonnage increased by 85 percent. The result is an expanding world fleet, driven by demand from China and emerging economies, as demonstrated by increased shipbuilding activity around the globe. Currently shipyards are building, or have orders for, the equivalent of as much as 20 percent of the existing world fleet. By unifying the Fireman's Fund and AGCS marine operations, Allianz continues to develop its AGCS brand to support clients in this key commercial sector, both in the United States and in other key marine markets worldwide.

The proposed merger of the portfolios is subject to regulatory approval.

Allianz Global Corporate & Specialty
Allianz Global Corporate & Specialty is the Allianz Group's dedicated carrier for corporate and specialty insurance customers. The company provides insurance and risk management consultancy across the whole spectrum of Marine, Aviation and Corporate business, including Energy, Engineering, Financial Lines (incl. D&O), Liability and Property insurance.

Worldwide, Allianz Global Corporate & Specialty operates in over 70 countries through the Allianz Group network. It employs more than 2000 people and provides insurance solutions to more than half of the Fortune Global 500 companies, writing a total of 2.8 billion euros gross premium annually (2007).

Fireman's Fund Insurance Company
Fireman's Fund Insurance Company is a premier property and casualty insurance company providing personal, commercial and specialty insurance products nationwide. It is rated 'A+' by Standard & Poor's Rating Services. Fireman's Fund is a member of the Allianz Group (NYSE: AZ), one of the world's largest providers of insurance and financial services. Allianz ranks as the most sustainable insurer in the Dow Jones Sustainability Index based on its economic, social and environmental performance.

Allianz