Arch Insurance North America, a member of Bermuda-based Arch Capital Group Ltd., announced Thursday, Aug 15, it has entered into a definitive agreement to purchase Ventus Risk Management, an insurtech managing general underwriter (MGU) based in the U.S.
According to a report from Reinsurance News, Arch Insurance North America is set to integrate Ventus into its platform. This will allow third-party capital to deliver capacity along with Arch’s product offerings.
“Ventus is an insurtech company that has successfully deployed its offerings to support its underwriters, deliver best-in-class analytics and modeling capabilities and provide superior customer experience,” said Arch Insurance North America CEO Matt Shulman.
Founded in 2016, Ventus Risk Management serves as an MGA with an in-house wholesale broker specializing in writing U.S. Coastal Property Insurance. It has emerged as one of the leading trusted MGUs for its capacity providers and a respected business partner.
“When combined with the scale of our E&S property portfolio and breadth of our relationships, we will bring enhanced value to our wholesale distribution partners,” CEO Shulman added.
In the same statement, Ventus co-founder Stuart Mercer is reported to become the CEO upon the close of the deal, following the retirement of co-founder George Reeth, who expressed his delight with the said acquisition.
“I’m incredibly proud of what we’ve built at Ventus. By joining the Arch family, our employees will have access to a depth of resources that will allow them to continue to bring robust, creative solutions to the market and develop professionally,” said Reeth.
The soon-to-be-CEO Stuart Mercer also expressed his excitement with the said deal.
“Arch is known for innovative structures that allow third-party capital to access insurance and reinsurance risks behind its strong underwriting expertise. The combined platform will bring broader capabilities and expanded capacity to Arch’s E&S property unit. I’m excited to continue to bring technology-driven solutions to the marketplace when our producers and customers need it the most,” he explained.