Summary
Arch Capital Group Ltd. (ACGL) announced on December 14, 2004, the completion of the sale of its non-standard automobile insurance operations to Protective Underwriting Services, Inc. This transaction was for a cash purchase price that closely mirrors the carrying value of the divested assets. While the sale is not expected to result in a significant gain or loss for ACGL, it will monetize approximately $13.6 million of goodwill from its balance sheet.
Key Highlights
- 1Completion of sale of non-standard automobile insurance operations on December 14, 2004.
- 2Purchaser is Protective Underwriting Services, Inc.
- 3Transaction price approximates the carrying value of the sold assets.
- 4No material gain or loss expected from the sale itself.
- 5Monetizes approximately $13.6 million in goodwill.
- 6ACGL will provide substantial reinsurance support for a specified period post-closing.
- 7Transaction marks a strategic divestiture of a specific business line.
Frequently Asked Questions
Arch Capital Group Ltd. sold its non-standard automobile insurance operations.
The sale was completed for a cash purchase price approximating the carrying value of the assets. While it is not expected to result in a material gain or loss, it will monetize approximately $13.6 million of goodwill.
Yes, a subsidiary of ACGL will provide substantial reinsurance support to the transferred subsidiaries for specified periods following the closing of the sale.
The buyer was Protective Underwriting Services, Inc.