Arch Capital Group Ltd. has entered into an agreement to acquire Barbican Group Holdings Limited (Barbican). The deal, which remains subject to regulatory approval, 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 (“Castel”) and other associated entities.
“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, 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.”
Commenting on the deal, Nicolas Papadopoulo, chairman and CEO, Arch Worldwide Insurance Group, also noted that the acquisition reinforces Arch Insurance’s commitment to Lloyd’s and London. He said the Barbican team enhances Arch’s existing specialty lines expertise, adding: “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.”
Maamoun Rajeh, chairman and CEO, 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.”
The purchase agreement was facilitated with funds managed by Carlson Capital, a U.S.-based alternative asset management firm. The transaction is expected to close in late third quarter or early fourth quarter 2019, pending regulatory approvals.