ACE Insurance Group acquires Chubb & Fireman’s Fund High Net Worth insurance portfolio, what does this mean to your policies?
The Fireman’s Fund Insurance Co. has sold its high net worth personal lines insurance portfolio to ACE Ltd. for $365 million. This figure includes not only the reinsurance of existing liabilities but also renewal policy rights. More importantly, it marks the end of the century-old brand name that was The Fireman’s Fund Insurance Company.
If you are an existing FFIC policy holder, your insurance coverage will continue until your policy is non-renewed at expiration time, as state law requires. At this time, ACE Insurance will make coverage offers to a majority of the of Fireman’s Fund’s policyholders. ACE has hired over 500 Fireman’s Fund employees and will be keeping a majority of the employees within the personal lines business. Fireman’s Fund had just over two thousand employees before the sale.
What does this mean for the market place?
Well for one thing, the high net worth insurance market place will change as a result of the sale of Fireman’s Fun to ACE Insurance. Clients who have insurance with the Fireman’s Fund are very likely to see a renewal offer from ACE with potentially higher premiums and revised coverage’s.
ACE is also currently involved in negotiations to purchase Chubb’s personal lines book of business. Chubb Insurance Group is known to insure some of the world’s wealthiest clients. They hold a substantial market share within the High Net Worth insurance segment and have built a loyal customer base by paying claims generously and efficiently. Chubb also charges some of the highest premiums in the marketplace.
With the acquisition of FFIC and Chubb, ACE is strategically poised to become a High Net Worth insurance powerhouse. They will likely use Chubb’s powerful branding to offer renewals to some of the existing FFIC customer base in an effort to maximize profits. Additionally, with this sale, ACE Insurance Group gains the renewal rights when it comes to reinsurance of existing reserves, new and renewal businesses, and a network of over a thousand agents and brokers. ACE’s Private Risk Services division is very established when it comes to the high net worth personal lines market. ACE’s acquisition of Fireman’s Fund is complementary in nature due to their shared geographic locations, customer service channels and underwriting and claims services.
So what does this mean for clients that currently fall into the High Value insurance category?
If they are renewed, they might get an offer that comes with different terms and higher premium. ACE will ultimately be able to pursue options on which company they’d like to use to renew individual clients on, whether Chubb or Fireman’s Fund. Those clients (policy holders) who are insured with Chubb or Fireman’s Fund should get quotes from the competing companies who exist in this space, like PURE High Net worth Insurance and AIG’s private client group.
If you need High Value Insurance coverage in Long Island or New York or just want to find out more, give us a call at 631-782-3175 . Whether you’re renewed or canceled from Fireman’s fund or Chubb, our licensed insurance agents can help answer your questions and make recommendations for your situation. Click below to submit our online insurance quote form today. We look forward to hearing from you
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