IBM To Build on Demand Infrastructure for Fireman's Fund

$157 million, seven-year contract relies on automated data centers

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ARMONK, N.Y. - 12 Jan 2005: Fireman's Fund Insurance Company has selected IBM to create an on-demand technology infrastructure that will automate many IT tasks, substantially increase system performance and help the insurer achieve increased return on equity goals, the companies announced today.

Under the $157 million, seven-year contract, Fireman's Fund will only pay for the back-end computing power it uses, enabling it to save $10 million each year in IT costs.

IBM will rely on its Universal Management Infrastructure to automate the insurer's key IT functions, such as turning computing capacity on and off, monitoring system performance, and taking corrective action when problems arise. IBM will create a technology infrastructure for Fireman's Fund that automatically draws computing power as needed from a shared pool of data center resources. Approximately 500 applications, including policy processing, billing, and claims handling will run on the new IT infrastructure.

Under the agreement, IBM will manage and support the company's 5,200 PCs, increasing flexibility and freeing up capital for investment in growth-oriented activities. IBM will also manage the group's help desk and handle deskside support.

"Through this arrangement Fireman's Fund is embracing the future of property-casualty information technology -- where IT resources match business need, and where companies can eliminate huge fixed infrastructures," said Fred Matteson, Chief Information Officer for Fireman's Fund. "IBM's technology and business skills will help Fireman's Fund turn that vision into a reality."

"Fireman's Fund is a leader in employing technology innovations that result in better performance for its customers," said Philip Guido, general manager, financial services sector, IBM Global Services. "IBM's Universal Management Infrastructure supplies unprecedented power and flexibility in helping companies realize their business goals."

Fireman's Fund is a premier property and casualty insurer providing commercial, marine, excess and agribusiness insurance products nationwide. Fireman's Fund is a member of the Allianz Group, one of the world's largest providers of insurance and other financial services. More information is available at www.firemansfund.com

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