NEW YORK--Fireman's Fund intends to become the choice ofindependent agents throughout the country backed by a significantinvestment from parent company Allianz and plans to become a majorplayer in the small to mid-size marketplace, the company'spresident said.

Michael E. LaRocco, president and chief executive officer of theNovato, Calif.-based insurance company, in an interview yesterday,said the company has received the backing of its Munich,Germany-headquartered parent, to expand its product offerings andsimultaneously improve its technology platform to make it easierfor agents to do business.

"This is an incredibly exciting time at Fireman's Fund," saidMr. LaRocco. "The direction that Fireman's Fund is now taking willmake us a much more significant player in the property and casualtymarketplace."

Allianz is investing $100 million into Fireman's Fund to expandits product offerings in the personal and commercial linesmarketplace, going beyond its high-net-worth customers and nichecommercial products and entering the small and mid-size marketincluding auto and homeowners, said Mr. LaRocco.

To facilitate that expansion, Fireman's Fund also plans toimprove its ease of doing business with technology improvements, hesaid, all of this in an effort to improve and deepen itsrelationship with independent agents.

"We are an independent agent company," said Mr. LaRocco. "Webelieve in that channel. We believe that is the way we can growthis organization. It is a new day at Fireman's Fund and we areputting together an organization that is going to be able to fullyrealize the potential of a great brand owned by a greatcompany."

On the technology side, Mr. LaRocco said while the company'stechnology is good, the aim is to "deliver better technology" andmake the independent agent's life "much easier" to place and dobusiness.

That concept is no more important than in the small and mid-sizemarketplace where Mr. LaRocco acknowledged that one of the keys toprofitability is technology efficiency for both the company andagents.

He said agents will not choose to do business with Fireman'sFund if it is difficult to place business and if the costs are notkept low.

"We want Fireman's Fund to be the primary choice for independentagents," he said.

On the product side, the company began last month to roll outits new products, but has no intention of abandoning its commitmentto traditional niches including its high-net-worth customers andspecialized commercial lines, said Mr. LaRocco. The focus will beexpansion of its product reach, but it will do so only when it isfully prepared and committed to doing so.

The expansion strategy is being done on a state by state basis.The company remains committed to its current independent agentpartner base but will look to expand that base where it does nothave a presence, Mr. LaRocco insisted.

Eleanor Barnard, chief distribution sales and marketing officerfor Fireman's Fund, explained that one thing the company will belooking for is to understand from agents what is working and isnot.

The company, she said, will also strive to understand thecustomers it services and make sure it has the right agents inplace to access those customers.

When asked why the company is going ahead with this expansion inthe middle of this economic crisis, Mr. LaRocco explained that theplan was presented to Allianz during the summer and the UnitedStates was one of a few markets the company made such a commitmentto. He said the U.S. market, at its core, is seen as a very strongone and Allianz felt this was a good opportunity to make themove.

"A lot of companies, during an economic downturn, though I don'tthink we have seen one as bad as this, tend to duck and cover andhang on tight. I think that is a mistake," observed Mr.LaRocco.

"We have to be smart and efficient, and do all the right things,but investing in an organization at a time like this is going toallow us, as the [economy] does improve... in six to 18 months, tobe positioned to be effective and ready to be that choice forindependent agents," he said.