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Arch subsidiary completes Coface stake swoop

Arch subsidiary completes Coface stake swoop | Insurance Business UK

Arch subsidiary completes Coface stake swoop

Arch Capital Group’s Ireland-based subsidiary Arch Financial Holdings Europe IV Limited has completed its acquisition of a 29.5% shareholding in credit insurer Coface.

The stake, which represents 44.8 million Coface shares at €9.95 apiece, was snapped up from Natixis. The French multinational financial services firm became Coface’s main shareholder in 2002.

With the finalised sale, Natixis is left with a 12.7% shareholding in Coface and is no longer represented on the latter’s board. Arch, meanwhile, is assuming four seats as part of the share purchase agreement.

“Our investment in Coface shows our confidence in the group’s strategy and its team,” said Arch Capital Group chief executive Marc Grandisson. “2020 has demonstrated the strategic importance of credit insurance for inter-company trade. We are delighted to accompany Coface in its future development.”  

Aside from the four directors from Arch, Coface also gets a new board chair in the form of Bernardo Sanchez Incera, who is thankful for the trust placed in him.

“In this very unusual period, I have total confidence in the ability of all the Coface teams, under the leadership of Xavier Durand, to continue implementing the ‘build to lead’ strategic plan,” he commented. “I am also pleased to welcome the representatives of Arch Capital Group.”

The management at Coface, meanwhile, expressed gratitude for Natixis and its parent Groupe BPCE for their role in the company’s governance over the past years.