Arch Capital Group Ltd. to Acquire Barbican Group Holdings Ltd.

Transaction Overview

Arch Capital Group Ltd. (“Arch”) has agreed to purchase Barbican Group Holdings Ltd. (“Barbican”)

  • Terms of the transaction are not disclosed

Acquired from funds managed by Carlson Capital, L.P. (“Carlson”)

  • Carlson is a U.S.-based alternative asset management firm

Barbican was formed in 2007 and is a multi-platform insurer with a focus on the Lloyd’s market

  • Core components of Barbican’s platform include:
    • Syndicate 1955 – underwriting on a global basis across 17 lines with £264mm of capacity(a) for 2019
    • Barbican Managing Agency – servicing third party Syndicates 1856 and 6132, as well as Syndicate 1955
    • Castel Underwriting Agencies – a leading specialty MGA formation platform

Arch is a Bermuda-based (re)insurer writing (re)insurance and mortgage insurance on a worldwide basis

  • Arch is listed on the NASDAQ stock exchange and has ~$12.5bn of capital as of June 30, 2019(b)
  • In 2018, net premiums written reached ~$5.3bn with mortgage insurance being the largest single line at Arch(b)
  • Arch Underwriting at Lloyd’s Ltd. is the Managing Agent for Syndicate 2012 with £200mm of capacity for 2019(c)

Arch’s proposed acquisition of Barbican will bring numerous strategic benefits including:

  • Enhanced specialty expertise and the ability to provide a material reinsurance offering through Lloyd’s
  • Significant third party capital relationships and the potential for further attractive fee income
  • A deepening of Arch’s commitment to Lloyd’s and the London Market

TigerRisk Capital Markets & Advisory Role

TCMA is acting as exclusive financial advisor to Carlson Capital and Barbican

Key TCMA responsibilities include:

  • Comprehensive strategic review of Carlson’s ownership interest in Barbican
  • Managing an organized and accelerated due diligence process
  • Offering key insight around transaction terms and conditions
  • Assistance in negotiating the final transaction terms
  • Providing objective advice and acting as a sounding board to the sellers throughout the process

(a) Syndicate 1955 effective capacity adjusting for whole account quota share of SPA 6132 (Toa Re).
(b) Source: Arch public filings.
(c) Source: Arch website.