BERLIN, April 5 (Reuters) - Allianz agreed to

sell Fireman's Fund, its U.S. insurance unit for mid-sized

corporations and entertainment industry clients, to

Bermuda-based Arch Insurance for $450 million in cash,

the German insurer said on Friday.

Arch Capital ( ACGL ) had to assume $2 billion in loss provisions,

from which the Munich-based group expects to gradually release

around $1 billion, bringing the deal's total value to $1.4

billion, Allianz added.

The 500-person unit accounted for around a third of the 2023

premium volume of the U.S. corporate insurance division Allianz

Commercial of $5.3 billion.

The transaction is part of Allianz's new strategy to focus

on large corporate and specialty businesses in the U.S. instead.