The IPOX® Watch: Arch Capital Group Ltd
Company Description
Formed in 2001, Arch Capital Group is a diversified specialty insurer and reinsurer headquartered in Bermuda. The company writes insurance, reinsurance, and mortgage insurance with ca. $15.1 billion in capital as of June 30, 2022. Arch Capital Group Ltd replaced Twitter Inc. In the S&P 500 on November 1, 2022.
Business Model
Arch Capital Group generates revenue through premium earned, investment income and other underwriting income.
M&A History
On 10/09/2020, Arch Capital Group announced to acquire Watford Holdings for $35.00 per share in an all cash transaction, a premium of 16.67% to its previous close. The acquisition was completed, along with Investment partners Kelso & Company and Warburg Pincus, on 07/02/2021 valuing Watford at an equity value of $622 million. Watford was relaunched as Somers Group.
Target Direct Listing History
On 03/28/2019, Watford Holdings Ltd (WTRE) began trading on the Nasdaq Global Select Market through a Direct Listing led by J. P. Morgan. Watford registered to resell up to 3,593,003 common shares. The property and casualty insurance and reinsurance company managed its underwriting operations through Arch.
Arch Capital Group Ltd was included in the IPOX® 100 Europe Index (ETF: FPXE US, FPXE LN, EFPX IM) on 03/21/2022 and the IPOX® International Index (ETF: FPXI US) on 09/19/2022, and currently weighs ca. 3.04% and 1.42% of the portfolio, respectively.
Read about Arch Capital’s Growth Outlook and more…
