Arch Capital Group Ltd - ACGL STOCK NEWS

Arch Insurance North America, part of Arch Capital Group (Nasdaq: ACGL), has completed the acquisition of Allianz's U.S. MidCorp and Entertainment insurance businesses. The deal, initially announced on April 5, brings nearly 500 former Allianz employees to Arch, ensuring continuity for clients and brokers. Mark Lange, previously Chief Strategy Officer for Arch Insurance North America, will lead the new businesses as Chief Middle Market Executive.

This strategic move aims to enhance Arch Insurance's middle market offerings and drive growth in this sector. The acquisition emphasizes continuity and a customer-centric approach, with Arch focusing on earning the trust of existing clients and distribution partners. Goldman Sachs & Co. and J.P. Morgan Securities acted as financial advisors to Arch, while Willkie Farr & Gallagher LLP provided legal counsel.

Arch Capital Group (NASDAQ: ACGL) announced its Q2 2024 results. Net income for common shareholders reached $1.3 billion ($3.30/share), a significant rise from $661 million ($1.75/share) in Q2 2023. After-tax operating income was $981 million ($2.57/share), up from $726 million ($1.92/share) in Q2 2023. The combined ratio excluding catastrophic activity and prior year development improved to 76.7% from 79.7%.

Gross premiums written increased by 11.1% to $5.38 billion, and net premiums written rose by 10.3% to $3.78 billion. Book value per share grew by 6.9% to $52.75. Significant segment performance includes:

• Insurance: Gross premiums up by 7.5%, underwriting income slightly increased by 0.9%.
• Reinsurance: Gross premiums grew by 15.6%, underwriting income surged by 49.4%.
• Mortgage: Net premiums written increased by 4.2%, underwriting income rose by 13.4%.

Strong investment income and lower expense ratios contributed to the impressive performance.

Arch Insurance North America, a subsidiary of Arch Capital Group (Nasdaq: ACGL), has received regulatory approval for its acquisition of Allianz's U.S. MidCorp and Entertainment insurance businesses. The transaction is expected to close on August 1, 2024, pending customary closing conditions. This acquisition, initially announced earlier, marks a significant expansion for Arch Insurance in the U.S. market, particularly in the mid-sized corporate and entertainment sectors. The regulatory green light is a important step forward in finalizing this strategic move, which is likely to enhance Arch's market position and diversify its insurance portfolio.

Arch Capital Group (NASDAQ: ACGL) announced it will release its 2024 second quarter results after the close of regular stock market hours on Tuesday, July 30. The company will host a conference call for investors and analysts on Wednesday, July 31, at 11 a.m. ET. A live webcast of this call will be accessible through the Investors section of the company's website. Additionally, a recording of the webcast will be available on the site approximately two hours after the event and will remain archived for one year.

Pittco Management has invested $1.045 billion to acquire a 10% equity stake in Pershing Square through a primary equity sale transaction. The investment was part of a consortium that includes Arch Capital Group (ACGL), BTG Pactual, Consulta , ICONIQ Investment Management, and Menora Mivtachim Holdings. Pershing Square, a newly formed partnership, owns 100% of Pershing Square Capital Management. This marks a significant business development, aiming to drive further value creation within Pershing Square's strategic operations. Bill Ackman, CEO of Pershing Square, welcomed the consortium's long-term investment, highlighting the firm's strong foundation and future growth potential.

Pershing Square Capital Management (PSCM) has announced the sale of a 10% common equity interest in Pershing Square Holdco, a new partnership owning 100% of PSCM, for $1.05 billion to strategic investors including Arch Capital Group (ACGL). This sale involves an internal reorganization of PSCM's ownership structure, resulting in a deemed assignment under the Investment Advisers Act of 1940. The reorganization has been approved by the Pershing Square Holdings (PSH) board, ensuring no changes to PSCM's management team or its investment management role. Furthermore, an independent Board of Directors has been established. Bill Ackman remains the largest shareholder of the controlling The transaction aims to accelerate growth in assets under management and maintain high long-term returns for investors.

Pershing Square Capital Management announced the sale of a 10% common equity interest in Pershing Square Holdco for $1.05 billion to a group of strategic investors, including Arch Capital Group (NASDAQ: ACGL). This strategic investment aims to accelerate Pershing Square's growth in assets under management.

Additionally, Pershing Square has established an independent Board of Directors and reorganized its ownership structure. This reorganization includes the creation of a liability company controlled by senior management. The transaction will not affect Pershing Square’s investment management services.

Bill Ackman, Pershing Square's founder and CEO, expressed enthusiasm about the new investors and the growth opportunities they bring. Key appointments following the transaction include Ben Hakim as President and Nick Botta as Vice Chairman.

Arch Capital Group (NASDAQ: ACGL) reported its 2024 first quarter results with net income of $1.1 billion, representing a 24.6% annualized return on equity. After-tax operating income stood at $933 million. The combined ratio was 78.8%, with a book value per share of $49.36. CEO Marc Grandisson highlighted the exceptional financial performance and commitment to client solutions. The insurance segment saw growth in premiums written, while the reinsurance segment showed increased net premiums. The mortgage segment experienced higher net premiums written and a decrease in loss ratio.

Allianz Global Corporate & Specialty SE (AGCS) has agreed to sell its Fireman’s Fund insurance businesses in the United States to Arch Insurance North America for $1.4 billion. The transaction includes a cash payment of $450 million and Arch assuming $2 billion of loss reserves. Approximately 500 employees will transfer to Arch as part of the deal. AGCS will focus on its Large Corporate and Specialty business in the U.S., leveraging its global capabilities.