Arch Reinsurance Ltd., a subsidiary of Arch Capital Group Ltd., announced it plans to acquire Somerset Bridge Group Ltd., Southern Rock Holdings Ltd. and Somerset affiliates, subject to regulatory approval.
The proposed acquisition will include Somerset’s motor managing general agent, distribution capabilities through direct and aggregator channels, affiliated insurer and fully integrated claims operation.
Financial details of the deal were not disclosed. 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,” said William Soares, head of Specialty for Arch Re, in a statement.
“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.
“This transaction also anchors our UK motor co-insurance and reinsurance capacity with a fully integrated platform,” he said.
“Somerset brings strong product and distribution capabilities. 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,” Soares continued.
Bristol, England-based Somerset Bridge Group aims “to build a sustainable and innovative business focused on underwriting, broking and claims handling of UK motor insurance,” said the company’s website.
Source: Arch Reinsurance Ltd.
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