Arch Capital Group Ltd. has agreed to purchase Barbican Group Holdings Limited from funds managed by Carlson Capital, a U.S.-based alternative asset management firm, subject to regulatory approval.
The proposed acquisition includes Barbican Managing Agency Limited, Lloyd's Syndicate 1955, Lloyd's Syndicate 1856 (“Arcus”), Lloyd's Special Purpose Arrangement (“SPA”) 6132, Castel Underwriting Agencies Limited, and other associated entities, Arch Capital said in a statement.
“The acquisition of Barbican deepens Arch's commitment to both Lloyd's and the London market and provides our broker partners with a more comprehensive array of products and expertise,” said Hugh Sturgess, the president and chief executive officer of Arch Insurance International. “The Barbican team has built an innovative platform and valuable specialty businesses with excellent long-term prospects. We look forward to building an even more compelling combined value proposition in the near future.”
Maamoun Rajeh, chairperson and chief executive officer of Arch Worldwide Reinsurance Group, added, “We welcome the Barbican team to Arch and look forward to providing a material Arch Reinsurance offering through Lloyd's for the first time. Arch has always been an excellent steward of third-party capital, and we're enthusiastic about expanding the existing relationships with third-party capital providers that have been crucial to Barbican's operating model.”
Nicolas Papadopoulo, chairperson and chief executive officer of Arch Worldwide Insurance Group, noted that the acquisition reinforced Arch Insurance's commitment to Lloyd's and London. “The Barbican team enhances our existing specialty lines expertise,” he said. “I look forward to the new perspectives those employees will bring to our London business and working together to shape the future of our combined operation. We also wish to welcome the team from Castel, whose continued growth will be financially supported by Arch while operating independently.”
Arch Capital said that it expected the transaction to close in late third quarter or early fourth quarter 2019, pending regulatory approvals.
RBC Capital Markets is acting as exclusive financial advisor to Arch. TigerRisk Capital Markets & Advisory is acting as exclusive financial advisor to Carlson Capital and Barbican. Legal advisors to Arch were Womble Bond Dickinson (UK) LLP, with Willkie Farr & Gallagher (UK) LLP acting as legal advisors to Carlson Capital.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].