Arch Insurance Europe has agreed to acquire the UK commercial lines business of The Ardonagh Group in a transaction valued at approximately £31m.
Structured as an asset-only deal, the transactions includes the renewal rights for Fusion, Arista and Towergate Commercial Underwriting, which generated over £150m of gross written premium last year.
These units focus on writing commercial property, casualty, motor, professional liability, personal accident and travel.
Under the terms of the transaction, about 250 employees of the acquired business will be absorbed by Arch.
Reactions to the deal
Arch Insurance Europe president and CEO Matt Shulman said: “We have a clearly stated strategy to build out our distribution capabilities across the UK and Europe and the acquisition of Geo’s commercial lines business represents an important step in this process, building upon the success of the earlier acquisition of Axiom Underwriting.”
“By expanding our regional presence with the addition of nine offices we immediately gain scale and presence in our target markets and we can deliver a broader range of specialist insurance solutions through a network of over 2,000 brokers.
“We are gaining a well-respected and highly experienced team of underwriting and distribution professionals who are perfectly placed to help us build a significant and sustainable business that can meet the growing needs of its clients.
Bermuda-based Arch Capital offers insurance, reinsurance and mortgage insurance across the globe through its wholly owned subsidiaries.