Arcus syndicate 1856 has narrowly avoided being placed into run-off after specialist motor insurer ERS announced it would back the operation, taking over from Credit Suisse ILS.
Credit Suisse has reportedly been seeking new management for Arcus after failing to meet the returns required by its ILS fund management operations in recent years.
For ERS, the deal represents an opportunity to expand beyond its core motor business and enter into specialty commercial insurance lines.
The terms of the deal will see ERS acquire the business capability of Arcus, but not prior liabilities, which will enable the firm to write targeted specialty commercial and reinsurance lines.
ERS will work with Arch Managing Agency Limited, subject to Lloyd’s approval, to transfer the Managing Agency responsibilities in the coming months, overseen by new CEO Peter Bilsby and ERS-backer Aquiline.
“Following on from announcing our expansion plans, we are delighted to have been able to move quickly to kick-start our growth plans,” said Bilsby.
“We have an ambitious agenda to create a balanced, multi-class insurance and reinsurance business over the medium term,” he continued.
“The last month or so has been exceptionally busy as we have been building out our strategy to create a modern, analytical business – we’re looking forward to welcoming the Arcus team into the fold. We can’t wait to get started.”
