Allianz Commercial and Coalition, an active insurer focused on preventing digital risks, today announced a transformative, strategic agreement to expand their cyber insurance partnership.
This agreement makes Coalition Allianz’s exclusive global partner for commercial cyber insurance across all segments.
By transitioning its commercial cyber insurance business to Coalition, Allianz is combining the distinct capabilities of both companies to serve business customers worldwide.
Upon completion, Coalition will take primary responsibility for pricing, product development, risk mitigation, and claims management for Allianz’s standalone commercial cyber portfolio, supported by Allianz for multinational underwriting, service, and claims.
Allianz will also supply long-term insurance capacity and access to its distribution channels. The 10-year financial partnership aims to align interests and drive targeted growth in the expanding commercial cyber market.
According to the announcement, Allianz will receive a combination of upfront consideration through increased equity in Coalition, including the right to nominate a director to the Coalition Board.
Oliver Bäte, Allianz SE’s Chief Executive Officer, a current independent Coalition board member, is expected to transition to this seat at closing.
Furthermore, Allianz has also committed to future equity investment and is entitled to performance-based elements linked to the growth and profitability of Coalition’s cyber business.
The partnership is set to combine Allianz’s brand, distribution scale, and financial security with Coalition’s Active Insurance model, which offers proactive cyber risk detection, threat mitigation, rapid incident response, and comprehensive coverage.
Chris Townsend, Member of the Board of Management of Allianz SE, explained the deal: “The global cyber insurance market is growing and evolving at pace and is a core coverage that is in high demand from our clients. Cyber threats differ fundamentally from traditional risks, demanding a dynamic, tech-forward approach to protect our clients effectively. Together, we’re building a best-in-class global cyber offering that combines Allianz’s brand, market reach, and financial strength with Coalition’s unique data-driven platform for underwriting and risk management, underpinning our growth strategy in this important segment.”
Joshua Motta, CEO and co-founder of Coalition, commented: “This milestone agreement underscores our shared vision with Allianz to safeguard organizations against cyber perils. By integrating Allianz’s cyber portfolio into our Active Insurance ecosystem and expanding our global alliance, we’re delivering a superior, consistent solution for enterprises of all scales. Over time, we expect this transaction will position Coalition to become the largest writer of cyber insurance globally.”
The new service will be implemented in phases, beginning in key collaborative markets, such as the US, the UK, Australia, Germany, Denmark, and Sweden, with expansion to additional regions thereafter.
This new agreement builds upon the strong relationship formed between the two companies, which led to subsequent cyber and capacity partnerships with Allianz and supported its expansion beyond North America.
It is anticipated that a number of Allianz Global Corporate and Specialty SE cyber specialists focused on larger corporate risks will transition to Coalition in due course, subject to local labour law agreements.
This partnership is subject to regulatory and other customary approvals, where relevant.
