Transactions

Arch Insurance to Acquire McNeil & Co.

Arch Insurance to Acquire McNeil & Co.

November 01, 2018 09:00 AM Eastern Daylight Time

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.

“But the greatest beneficiary will be McNeil’s existing customers, who will be ensured continuity of service and the capital resources of Arch.”

“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.

Contacts
Arch Capital Group Ltd.
François Morin, 441-278-9250
or
Arch Insurance Group
Mark Lange, 860-713-2026APRIL strengthens its foothold in Canada with the acquisition of Benecaid

Sherman & Company Served as Financial Advisor to Benecaid

Benecaid, a specialist in group health insurance for VSEs, strengthens APRIL's presence and offering in Canada.

Strengthened foothold in Canada, one of APRIL's principal markets outside France
Complementary business lines and locations
A profitable and recognized company

Lyon, France: April 23, 2018: Active in the Canadian property & casualty market for over 10 years, the APRIL group continues to export its expertise abroad via the acquisition of Benecaid, a managing general underwriter and third party administrator specializing in group health insurance for VSEs – one of the group's core areas of expertise.

Backed by over 20 years of experience and located in Toronto, Benecaid’s 53 staff members serve over 22,000 clients, which translates into around €60 million in premiums. Thanks to this acquisition, APRIL is strengthening its foothold in the dynamic Canadian complementary health insurance market, with annual growth of seven percent , representing €17 billion in premiums in 2017.

Benecaid was chosen because of the complementary nature of its business models, activities and locations with those of APRIL in Canada (wholesale property & casualty brokerage in Quebec, Ontario and Alberta). This acquisition enables the group to continue expanding and diversifying its business in Canada beyond property & casualty.

In addition, APRIL and Benecaid share a strong customer focus and a close working relationship with their network of independent distributors, thanks to innovative solutions and customized support. As such, Benecaid launched Honeybee in 2017, a digital platform enabling distributors to directly customize their clients' group insurance offering. Honeybee also enables policyholders to take out additional coverages to personalize their benefits.

“We’ve invested heavily in new platforms and technology to empower the advisor community and help companies to better compete in this fast-changing labour market.” said Peter Berczi, Benecaid President and CEO.

APRIL acquired a 93 percent equity interest in Benecaid. The company's management team, which

1Source: Willis Tower Watson  
2Source: Canadian Life and Health Insurance Association

remains unchanged, holds the remaining seven percent. The transaction was financed with the group’s cash.

Emmanuel Morandini, APRIL group CEO, made the following comments: "By acquiring Benecaid, the group is continuing its expansion in a growing and priority business line for APRIL. Canada is already one of the main contributing countries to our gross margin outside France; we are boosting our positioning there thanks to a profitable company recognised for the quality of its expertise, and which complements our existing activities. This transaction is fully in line with our sustainable growth strategy, combining a local foothold in health insurance with the global expansion of our expertise".

UPCOMING EVENTS

›    Q1 2018 sales: 24 April 2018 after market close
›    Shareholders’ Annual General Meeting: 26 April 2018, in Lyon
›    2018 Half-year results: 6 September 2018 after market close


CONTACTS

Analysts and investors
Guillaume Cerezo: +33 (0)4 72 36 49 31 / +33 (0)6 20 26 06 24 – This email address is being protected from spambots. You need JavaScript enabled to view it.

Press
Samantha Druon, for APRIL: +33 (0)7 64 01 74 35 – This email address is being protected from spambots. You need JavaScript enabled to view it.
Linda North, for Benecaid: +1 416-708-8012 – This email address is being protected from spambots. You need JavaScript enabled to view it.


This release contains forward-looking statements that are based on assessments or assumptions that were reasonable at the date of the release, and which may change or be altered due to, in particular, random events or uncertainties and risks relating to the economic, financial, regulatory and competitive environment, the risks set out in the 2017 Registration Document, and any risks that are unknown or non-material to date that may subsequently occur. The Company undertakes to publish or disclose any adjustments or updates to this information as part of the periodical and permanent information obligation to which all listed companies are subject.

About APRIL

In 2018, APRIL—the international insurance services group and leading wholesale broker in France—will be celebrating its 30th anniversary. And at 30 years young, APRIL still has many more years to offer to simplify the lives of its customers and partners—be they individuals, professionals and businesses—in the 31 countries where the group operates. On their behalf, APRIL’s 3,800 employees design, manage and distribute specialist insurance solutions (health and personal protection, mortgage, property and casualty, mobility and legal protection) as well as insurance services, capitalizing on its experience to make insurance easier and more accessible to as many customers as possible.
Listed on Euronext Paris (Compartment B), the group recorded revenue of 928.4 million euros in 2017.