Allianz Commercial and Coalition, a proactive insurance company focused on preventing digital risks, today announced a transformative strategic agreement to expand its cyber insurance partnerships.
The agreement makes Coalition Allianz the exclusive global partner for commercial cyber insurance across all sectors.
By transferring its commercial cyber insurance business to Coalition, Allianz will combine the unique capabilities of both companies to serve commercial clients around the world.
Upon completion, Coalition will have primary responsibility for pricing, product development, risk mitigation and claims management for Allianz’s independent commercial network portfolio, with multinational underwriting, servicing and claims support provided by Allianz.
Allianz will also provide long-term insurance capabilities and access to its distribution channels. The 10-year financial partnership is designed to align interests and drive targeted growth in the expanding business networking market.
According to the announcement, Allianz will receive a series of upfront payments by increasing its equity stake in Coalition, including the right to nominate directors to Coalition’s board of directors.
Oliver Bäte, Allianz Group CEO and current Independent Alliance board member, is expected to take over the seat upon closing.
In addition, Allianz is committed to future equity investments and is entitled to receive performance-based elements related to the growth and profitability of Coalition Networks.
The partnership combines Allianz’s brand, distribution scale and financial security with Coalition’s Active Insurance model, which provides proactive cyber risk detection, threat mitigation, rapid incident response and comprehensive underwriting.
Chris Townsend, member of the management committee of Allianz SE, explained the deal: “The global cyber insurance market is growing and evolving rapidly and is a core insurance in high demand from our customers. Cyber ​​threats are fundamentally different from traditional risks and require a dynamic, technologically advanced approach to effectively protect our customers. Together we are building a best-in-class global cyber offering, combining Allianz’s brand, market coverage and financial strength with Coalition’s unique data-driven underwriting and risk management, to support our growth strategy in this important area.”
Joshua Motta, CEO and Co-Founder of Coalition, commented: “This landmark agreement underscores our shared vision with Allianz to protect organizations from cyber threats. By integrating Allianz’s cyber portfolio into our Active Insurance ecosystem and expanding our global alliances, we are delivering superior, consistent solutions to businesses of all sizes. Over time, we expect this transaction will make Coalition the largest cyber insurance underwriter in the world.”
The new service will be implemented in phases, starting in key partner markets such as the United States, United Kingdom, Australia, Germany, Denmark and Sweden, before expanding to other regions.
This new agreement builds on the strong relationship formed between the two companies, which has led to subsequent network and capacity partnerships with Allianz and supports its expansion outside of North America.
It is expected that some Allianz Global Corporate and Specialty SE cyber specialists focused on larger corporate risks will transition to Coalition in due course, subject to local employment law agreements.
This partnership is subject to regulatory and other relevant regulatory approvals.
