New Jersey-based specialty lines program administrator Axon Underwriting Services has acquired the renewal portfolio of Allianz Global Corporate & Specialty’s (AGCS) U.S. contaminated and consumer products recall insurance business written through Allianz Global Risks US Insurance Co.
The transaction builds on recent Axon moves into the recall market and signals the end to the AGCS Crisis Management Insurance team presence in North America and the centralization of its product recall underwriting in London.
The terms of the sale of rights to what AGCS calls its Crisis Management Insurance book of business were not disclosed. The sale includes certain recall accounts AGCS bought from Liberty Mutual in 2018.
In June, Axon formed its own product recall Crisis Management division to serve U.S. domiciled clients. Axon’s Crisis Management division is led by Alex Pittignano, senior vice president, along with Marcos Garcia Norris, senior vice president. Both have experience in the Crisis Management field, including experience with AGCS.
Pittignano said Axon’s underwriters are “prepared to ensure a smooth renewal for clients during this transition.”
The AGCS Crisis Management Insurance portfolio includes terrorism and political violence as well as contaminated product and product recall insurance. AGCS confirmed the recall insurance renewal rights sale and said rights to the terrorism and political violence accounts are also part of the deal with Axon.
AGCS, the industrial insurer of Allianz Group, said it is changing its approach to Crisis Management business. “This decision comes after a strategic business review,” the company said.
Starting Oct. 1, AGCS will create a Crisis Management hub in London to underwrite all recall business globally through one center. AGCS said its Crisis Management recall products will continue to be offered to clients and brokers, but will be written out of the London hub rather than by local teams.
Existing political violence insurance teams will remain in AGCS regional locations but from Oct. 1 will cease presence in North America.
In July, AGCS began a restructuring program designed “to regain profitability and market leadership in the corporate and specialty insurance segment. The plan includes simplifying its regional organization by reducing the number of regional units from seven to six, moving from a country-centric structure to a more global setup with regional delivery.
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