Arch Reinsurance Ltd. plans to acquire longtime client Somerset Bridge Group Ltd. for an undisclosed price.
The acquisition covers Somerset, Southern Rock Holdings Ltd. and all Somerset affiliates, subject to regulatory approval. Included in the deal are Somerset’s motor managing general agent, distribution capabilities through direct and aggregator channels, affiliated insurer and fully integrated claims operation.
Arch Re is purchasing the company 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.
“Somerset has been a client of Arch Re for 11 years, which gives us significant insight and confidence in the business and the team,” William Soares, Head of Specialty for Arch Re, said in prepared remarks. “This proposed acquisition supports our strategy of diversifying our sources of premium and allows for collaborative cycle management of the class over time.
He added that the transaction will help Arch Re anchor its UK motor coinsurance and reinsurance capacity with a fully integrated platform.
“Somerset brings strong product and distribution capabilities,” Soares said. “Coupled with Arch’s analytical capabilities and capital management, the combination of our two firms will provide an enhanced proposition to our customers, stakeholders and third-party capital providers.”
Arch Reinsurance Ltd., part of Arch Capital Group Ltd., is focused on the specialty property and casualty reinsurance marketplace. Arch Capital Group Ltd. is a publicly listed Bermuda exempted company with approximately $15.8 billion in capital at March 31, 2021. It provides insurance, reinsurance and mortgage insurance globally through its wholly owned subsidiaries.
Source: Arch Reinsurance Ltd.
*This story was updated with material from a related Insurance Journal piece on the acquisition.