(Bloomberg) -- Allianz SE agreed to sell some US insurance businesses to Arch Insurance North America for $450 million as the company refocuses its operations in the country.

The German firm’s AGCS unit will divest its business with US mid-size companies and the entertainment industry, according to a statement Friday. The total transaction value is $1.4 billion as Allianz also expects the deal to free up capital over time. AGCS will now focus its US operations on large corporates and specialty insurance.

Chief Executive Officer Oliver Baete has made several disposals to streamline operations while staying mostly clear of bigger acquisitions in recent years, allowing him to return billions of euros to investors through share buybacks and increasing dividends.

The Munich-based company last year announced it was selling a 51% stake in Allianz Saudi Fransi, divesting a minority stake in CPIC Fund Management and acquiring Generali’s non-life insurer Tua Assicurazioni for €280 million.

The latest transaction with Arch Insurance North America is expected to close in the second half of this year. About 500 employees from Allianz are set to transfer to Arch as part of the agreement.

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