Arch Capital to Acquire UK-Based Barbican Group Holdings

Arch Capital Group Ltd. has entered into an agreement to purchase Barbican Group Holdings Ltd. from funds managed by Carlson Capital, a U.S.-based alternative asset management firm, subject to regulatory approval.

The acquisition includes Barbican Managing Agency Ltd., Lloyd’s Syndicate 1955, Lloyd’s Syndicate 1856 (Arcus), Lloyd’s Special Purpose Arrangement (SPA) 6132, Castel Underwriting Agencies Ltd. and other associated entities.

Financial details of the deal were not disclosed.

“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.”

“We welcome the Barbican team to Arch and look forward to providing a material Arch Reinsurance offering through Lloyd’s for the first time,” said Maamoun Rajeh, chairman and CEO, Arch Worldwide Reinsurance Group. “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, noted the acquisition reinforces 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.”

The transaction is expected to close in late third quarter or early fourth quarter 2019, pending regulatory approvals.

RBC Capital Markets is acting as exclusive financial adviser to Arch. TigerRisk Capital Markets & Advisory is acting as exclusive financial advisor to Carlson Capital and Barbican. Legal advisers to Arch were Womble Bond Dickinson (UK) LLP, with Willkie Farr & Gallagher (UK) LLP acting as legal advisers to Carlson Capital.

Source: Arch Capital Group Ltd.

Topics Mergers & Acquisitions Excess Surplus London Lloyd's