8-KOther Events

ARCH CAPITAL GROUP LTD. 8-K Report (Jul 6, 2001)

Filed July 6, 2001For Securities:ACGLACGLNACGLO

Summary

Arch Capital Group Ltd. (ACGL) has filed an 8-K report detailing the acquisition of the remaining capital stock of Altus Holdings, Ltd. (now Arch Risk Transfer Services Ltd.) for approximately $38.9 million. This acquisition, finalized on June 22, 2001, involved $38.5 million in cash and the issuance of 24,200 ACGL Common Shares to continuing management. Prior to this, ACGL held a 27.9% minority interest in Altus. Altus, through its subsidiaries like First American Insurance Company, offers insurance and alternative risk transfer services. While the report confirms the acquisition, ACGL notes that detailed financial statements and pro forma information for the acquired business are impractical to include at this time and will be filed via amendment within 60 days. Investors should note this pending information for a complete understanding of the transaction's financial impact.

Key Highlights

  • 1ACGL acquired the remaining capital stock of Altus Holdings, Ltd. (now Arch Risk Transfer Services Ltd.) for approximately $38.9 million.
  • 2The purchase price comprised $38.5 million in cash and 24,200 ACGL Common Shares.
  • 3This transaction consolidates full ownership of Altus, where ACGL previously held a 27.9% minority stake.
  • 4Arch Risk Transfer Services Ltd. provides insurance and alternative risk transfer services, including operating through First American Insurance Company with licenses in 49 states.
  • 5The acquisition was finalized on June 22, 2001, pursuant to a reorganization agreement dated March 23, 2001.
  • 6Required financial statements and pro forma information for Altus will be filed by amendment at a later date, within 60 days.
  • 7The report includes the Reorganization Agreement and related press releases as exhibits.

Frequently Asked Questions

The primary purpose was to report the acquisition of the remaining capital stock of Altus Holdings, Ltd. (now Arch Risk Transfer Services Ltd.) by Arch Capital Group Ltd. (ACGL).

ACGL paid approximately $38.9 million for Altus Holdings, Ltd. The payment consisted of approximately $38.5 million in cash and 24,200 shares of ACGL Common Stock issued to employee shareholders who will continue in management positions.

Altus Holdings, Ltd. (now Arch Risk Transfer Services Ltd.) provides insurance and alternative risk transfer services through its subsidiaries, including First American Insurance Company, which is licensed in 49 states.

The filing states that it is impractical to provide the required financial statements and pro forma financial information for Altus at the time of filing. It is anticipated that these will be filed by amendment as soon as practicable, but no later than 60 days following the filing of this report.