Bermuda-based re/insurance company Arch Capital Group said yesterday that it has entered into an agreement to acquire Barbican Group Holdings Limited from owner investor Carlson Capital.
For Arch Capital, the move will provide a significant expansion to its London and Lloyd’s related specialty insurance and reinsurance underwriting operations, given the acquisition will include Barbican Managing Agency Limited, Lloyd’s Syndicate 1955, Lloyd’s Syndicate 1856 (“Arcus”), Lloyd’s Special Purpose Arrangement (“SPA”) 6132, Castel Underwriting Agencies Limited (“Castel”) and other entities of the Barbican Group.
For U.S. alternative investment manager Carlson Capital the sale is likely more about monetisation and realising some of the value created since it bought into Barbican.
The acquisition, which has been rumoured in the market for some time, remains subject to regulatory approval.
“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,” commented Hugh Sturgess, President and CEO, 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,” Sturgess added
Maamoun Rajeh, Chairman and CEO, Arch Worldwide Reinsurance Group, also commented, “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, Chairman and CEO, Arch Worldwide Insurance Group, further explained, “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.”
The acquisition of Barbican Group demonstrates Arch Insurance’s commitment to Lloyd’s and London, Papadopoulo further said.
It’s understood the acquisition is likely to close in the late third quarter or early fourth quarter of 2019, pending regulatory approvals.
RBC Capital Markets is assisting as Arch’s exclusive financial advisor, while TigerRisk Capital Markets & Advisory is providing the same to Carlson Capital and Barbican. Womble Bond Dickinson (UK) LLP is providing legal advice to Arch and Willkie Farr & Gallagher (UK) LLP to Carlson Capital.