German insurer Allianz said it had agreed to sell its Fireman's Fund personal insurance business to insurer ACE for $365 million, freeing Allianz to focus on building its US property and casualty operations.

Allianz, Europe’s largest insurer, had said in September it was looking at options for the personal lines part of the business, which it said was profitable.

At that time, it unveiled plans to integrate Fireman’s Fund’s commercial property and casualty (P&C) business into its AGCS unit.

The deal clears up one of two problem areas for Allianz in the United States before Oliver Baete takes over from Michael Diekmann as group chief executive next May.

Allianz had struggled for years to bring underwriting losses under control at Fireman’s Fund.– (Reuters)