Arch Re Closes Acquisition of Somerset Bridge Group

Arch Reinsurance Ltd. has completed the acquisition of Somerset Bridge Group Limited, Southern Rock Holdings Limited and affiliates. Arch Re originally announced its plan to acquire Somerset in June.

The acquisition includes Somerset’s motor insurance managing general agent, distribution capabilities through direct and aggregator channels, affiliated insurer and fully integrated claims operation.

Somerset Bridge Insurance Services Limited brokers under the brands GoSkippy and Vavista and through an affinity partnership with Debenhams. Somerset Bridge Limited also provides claims handling services to the group’s policyholders.

The affiliate Southern Rock Insurance Co. Ltd. is based in Gibraltar and is regulated by the Gibraltar Financial Services Commission, according to its website, which indicates it underwrites personal motor insurance in the UK.

Financial details of the deal were not disclosed. Arch Re is purchasing Somerset from UK insurance executive Arron Banks, who is the majority shareholder, and individual holders.

Banks, who co-founded the pro-Brexit group, Leave.EU, had been investigated in the UK for possible breaches of election laws. The investigation was later dropped. Banks’ brokerage, Eldon Insurance Services, was rebranded as Somerset Bridge in 2019.

William Soares, head of Specialty for Arch Re, in a statement, said the acquisition supports Arch Re’s strategy of diversifying its sources of premium and “allows for collaborative cycle management of the class over time.”

He said the deal also anchors his firm’s UK motor co-insurance and reinsurance capacity with a fully integrated platform.

Arch Capital Group provides insurance, reinsurance and mortgage insurance on a worldwide basis through its wholly owned subsidiaries.

Topics Mergers & Acquisitions