Arch Reinsurance Ltd., the specialty property and casualty reinsurance subsidiary of Bermuda-based Arch Capital Group Ltd., is looking to acquire Somerset Bridge Group Limited, Southern Rock Holdings Limited and affiliates (Somerset).
The proposed transaction, which is subject to regulatory approval, includes Somerset’s motor managing general agent, distribution capabilities via direct and aggregator channels, and the company’s affiliated insurer and fully integrated claims operation.
Arch Re says that the purchase of Somerset’s full value chain platform will deepen its motor and distribution capabilities in the UK.
William Soares, Head of Specialty for Arch Re, commented: “Somerset has been a client of Arch Re for 11 years, which gives us significant insight and confidence in the business and the team. This proposed acquisition supports our strategy of diversifying our sources of premium and allows for collaborative cycle management of the class over time.
“This transaction also anchors our UK motor coinsurance and reinsurance capacity with a fully integrated platform. 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.”
Located in Bristol, Gloucestershire, UK, Somerset is focused on underwriting, broking and claims handling of UK motor insurance.