AGCS to close its Dubai office
Allianz Global Corporate & Specialty (AGCS) is to close its Dubai office, impacting 23 jobs. The decision comes after a strategic business review of the office and its future potential. AGCS said the Dubai office had stagnant premium growth over the last few years and a high cost base, mostly driven by office rental, HR costs and broker commissions.
The Dubai office generated around €30 million ($330 million) GWP on average over the last few years, and the company said it is confident it can maintain a significant share of this premium income by underwriting MENA risks in international insurance markets.
The company confirmed that there will be no new business after April 30 2020. However, the office will remain open until the end of the year.
“As a global insurer focused on large corporate risks AGCS will continue to support both local and global clients with business interests in the MENA region writing business from its underwriting hubs in international insurance markets such as London or Asia,” the company said in a statement. “AGCS will cooperate with existing network partners in order to provide local policies for global programs for multinational companies. We will work closely with our customers and brokers to manage this transition of business as smoothly as possible. As AGCS Dubai is part of Allianz Risk Transfer AG, the ongoing management of claims and handling of the run-off portfolio will be managed by ART AG.”
Since 2010 AGCS has been operating under a reinsurance license in Dubai through a branch of its subsidiary Allianz Risk Transfer AG, mostly focusing on engineering, property, liability and financial lines.
“After review, we have decided there was not the potential to scale the Dubai office’s activities to achieve long-term profitable growth given a high cost base and stagnant premium growth over the past few years,” said the company. “Regrettably, 23 employees based in Dubai will be impacted by this decision, and we will now work with affected colleagues to ensure they are treated fairly and that they are properly supported throughout this process.”
