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Arch Capital (ACGL) Acquires United Kingdom-Based Barbican

Zacks Equity Research

Arch Capital Group Ltd. ACGL has acquired Barbican Group Holdings Limited (Barbican) along with Barbican Managing Agency Limited, Lloyd’s Syndicate 1955, Castel Underwriting Agencies Limited (Castel) and other associated entities.

Founded in 2007 and based in United Kingdom, Barbican Group Holdings underwrites business through the syndicates at Lloyd’s. It delivers insurance underwriting and claims service and offers innovative solutions for risks. Barbican’s lines of business include cyber, marine reinsurance, property reinsurance, and energy and specialty lines. The Barbican team has built an innovative platform and valuable specialty businesses with excellent long-term prospects.

The acquisition of Barbican Group will expand Arch’s commitment to both Lloyd’s and the London market and offer brokers and clients of Arch Capital access to its Insurance and Reinsurance platforms. The Barbican team will also enhance existing specialty lines expertise of Arch Capital.

Following the buyout, Barbican will be merged into Arch’s Insurance and Reinsurance operations and strengthen third-party capital relationships.

Arch Capital Group offers insurance, reinsurance and mortgage insurance on a global basis with operations in Bermuda, the United States, Canada, Europe, Australia and Hong Kong, with a focus on specialty lines. This Bermuda based company has made a number of acquisitions. The numerous buyouts made by the company have helped it to diversify its business, increase capabilities, enhance operations and expand global footprint.

Shares of this Zacks Rank #3 (Hold) property and casualty insurance have gained 57.1% year to date, outperforming the industry’s rally of 9.8%. The company’s policy of ramping up growth and capital position should continue to drive share price higher.

Stocks to Consider

Some better-ranked stocks from the same space are Donegal Group Incorporation DGICA, RLI Corporation RLI and Cincinnati Financial Corporation CINF, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Donegal provides personal and commercial lines of property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England and southern states. The company beat earnings estimates in the trailing four quarters, the average being 248.34%.

RLI underwrites property and casualty insurance in the United States and internationally. The company beat earnings estimates in the trailing four quarters, the average being 154.89%.

Cincinnati Financial provides property casualty insurance products in the United States and offers coverage for commercial casualty, commercial property, commercial auto, and workers' compensation. The company beat earnings estimates in the trailing four quarters, the average being 20.79%.

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RLI Corp. (RLI) : Free Stock Analysis Report
 
Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
 
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Donegal Group, Inc. (DGICA) : Free Stock Analysis Report
 
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