PEMBROKE, Bermuda--(BUSINESS WIRE)--
Arch Capital Group Ltd. (NASDAQ:ACGL) today announced it has entered
into a definitive agreement to acquire McNeil & Co. (“McNeil”), a
nationwide leader in specialized risk management and insurance programs
headquartered in Cortland, New York. Terms of the transaction were not
disclosed.
“McNeil is a great fit for Arch and solidifies a program relationship
that dates back to Arch’s earliest days,” said Nicolas Papadopoulo,
Chairman and CEO of Arch Worldwide Insurance Group. “It’s a true win-win
for both parties as Arch benefits from McNeil’s reputation in the
program space, underwriting expertise and experience while McNeil
receives the financial strength and depth that comes from a company like
Arch.”
Mr. Papadopoulo continued, “But the greatest beneficiary will be
McNeil’s existing customers, who will be ensured continuity of service
and the capital resources of Arch.”
McNeil was founded in 1989 with a focus on delivering a consultative
approach to managing risk for its clients. Its operations include over
1,300 retail agents in the U.S. and it produced $153.7 million of
premium for Arch Insurance in 2017. Post-acquisition, McNeil will
operate independently, supporting Arch Insurance’s program division.
Dan McNeil, President of McNeil, said the acquisition was a unique
opportunity. “When Arch approached us about joining the company we knew
that we had to listen. The companies have a long history of working
together and a shared set of values. By coming together, we’re able to
provide better service to our clients and greater opportunities to our
employees. I’m excited about what the future holds.”
The transaction is expected to close later this quarter and is subject
to closing conditions, including regulatory approvals, clearances and
relevant jurisdictions.
Advisors
Sherman & Company LLC served as financial advisor to Arch on the
transaction.
About Arch Capital Group Ltd.
Arch Capital Group Ltd., a Bermuda-based company with approximately
$11.21 billion in capital at September 30, 2018, provides insurance,
reinsurance and mortgage insurance on a worldwide basis through its
wholly owned subsidiaries.
About McNeil & Company
McNeil & Co. is a nationwide leader in specialized insurance programs,
drawing on deep industry expertise to develop and deliver policies and
risk management services that meet the unique needs of clients. McNeil &
Co. offers the best possible specialized coverage, along with a full
array of risk management services, to help customers maximize
preparedness and grow their businesses. Established in 1989 to answer a
need for more comprehensive, tailored policies in the emergency services
market, McNeil & Co. has developed and expanded a model for specialty
insurance programs based on genuine industry knowledge and a
consultative approach to loss control and risk management. Acclaimed
products include AdvenSure, AnimalKeepers, ASIP, Car Wash, ESIP (and
Benefits), FireWatch, HOMed (O&P Plus), WildPRO and the Bar, Tavern,
Club program. For more information, visit: mcneilandcompany.com.
Cautionary Note Regarding Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward−looking statements. This release or any other
written or oral statements made by or on behalf of Arch Capital Group
Ltd. and its subsidiaries may include forward−looking statements, which
reflect our current views with respect to future events and financial
performance. All statements other than statements of historical fact
included in or incorporated by reference in this release are
forward−looking statements.
Forward−looking statements can generally be identified by the use of
forward−looking terminology such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe" or "continue" or their negative or
variations or similar terminology. Forward−looking statements involve
our current assessment of risks and uncertainties. Actual events and
results may differ materially from those expressed or implied in these
statements. A non-exclusive list of the important factors that could
cause actual results to differ materially from those in such
forward-looking statements includes the following: adverse general
economic and market conditions; increased competition; pricing
and policy term trends; fluctuations in the actions of
rating agencies and our ability to maintain and improve our
ratings; investment performance; the loss of key personnel; the
adequacy of our loss reserves, severity and/or frequency of
losses, greater than expected loss ratios and adverse development on
claim and/or claim expense liabilities; greater frequency or
severity of unpredictable natural and man-made catastrophic events; the
impact of acts of terrorism and acts of war; changes in regulations
and/or tax laws in the United States or elsewhere; our
ability to successfully integrate, establish and maintain operating
procedures as well as integrate the businesses we have acquired or may
acquire into the existing operations; changes in accounting
principles or policies; material differences between actual
and expected assessments for guaranty funds and mandatory pooling
arrangements; availability and cost to us of reinsurance to
manage our gross and net exposures; the failure of others to
meet their obligations to us; and other factors identified
in our filings with the U.S. Securities and Exchange Commission.
The foregoing review of important factors should not be construed as
exhaustive and should be read in conjunction with other cautionary
statements that are included herein or elsewhere. All subsequent written
and oral forward−looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by these
cautionary statements. We undertake no obligation to publicly update or
revise any forward−looking statement, whether as a result of new
information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181101005590/en/
Arch Capital Group Ltd.
François Morin, 441-278-9250
or
Arch
Insurance Group
Mark Lange, 860-713-2026
Source: Arch Capital Group Ltd.