Arch Capital Group, the Bermuda headquartered insurance and reinsurance firm, is set to buy managing agent, Lloyd’s operator and also ILS facilitator or servicer Barbican Group Holdings Limited.
Arch will gain a significantly enhanced reach and access into the London and Lloyd’s insurance and reinsurance marketplace, while at the same time acquiring interests in managing syndicates for an insurance-linked securities (ILS) manager, and some other ILS related operations.
The acquisition 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.
But of course, Barbican has worked on and facilitated a number of collateralised reinsurance structures in the past, including a stop-loss retro style product for Lloyd’s players, and the managing agency also looks after a Lloyd’s syndicate on behalf of the Credit Suisse ILS team.
It’s not clear at this time whether Arch will look to continue those activities after its acquisition of Barbican completes, which is expected to be in the late third quarter or early fourth quarter 2019, pending regulatory approvals.
Arch is acquiring Barbican from its current owners, funds managed by U.S. alternative asset manager Carlson Capital.
The deal greatly expands Arch’s activities in London, including allowing it to underwrite reinsurance through Lloyd’s for the first time.
The acquisition also underscores Arch’s overall commitment to Lloyd’s and London
“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,” explained 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.”
Maamoun Rajeh, Chairman and CEO, Arch Worldwide Reinsurance Group, also said, “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.”
Nicolas Papadopoulo, Chairman and CEO, Arch Worldwide Insurance Group, added, “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.”