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Arrowpoint Capital Finalizes Acquisition of Royal & SunAlliance USA Businesses
Arrowpoint Capital Corp. today announced that it has completed the acquisition of all Royal & SunAlliance USA (R&SA USA) businesses formerly owned by Royal & Sun Alliance Insurance Group plc of London. Under the terms of the transaction approved February 20 by Delaware Insurance Commissioner Matthew Denn, Arrowpoint Capital will focus on meeting policyholder obligations through a continuation of current operational, financial and governance guidelines.
Arrowpoint Capital Corp. was formed in June 2006 by the senior management and outside directors of Royal & SunAlliance USA. The company is led by former R&SA USA President & CEO John Tighe and his senior management team, who have successfully headed Royal’s US operation since 2003.
"Our focus has always been on our obligation to all of our policyholders – the successful completion of this transaction is a huge win for them," said John Tighe. "The transaction builds on the strong success we’ve achieved to date through our restructuring efforts and provides us with a solid foundation for taking the business forward. Most importantly, it represents an excellent outcome for our policyholders, who are the primary beneficiaries of the acquisition and the additional $287.5 million it provides."
Under the terms of the transaction, Arrowpoint Capital management purchased 100% of the interests of Arrowpoint General Partnership, the US holding entity which owned the R&SA USA businesses, for $300 million of deferred consideration. At the close of the transaction, the Group contributed $287.5 million of additional capital to the US-regulated entities.
"I would like to express my appreciation to Commissioner Denn, the Delaware Insurance Department and Professor Hamermesh, the independent hearing officer, who worked tirelessly to ensure a fair, thorough and open process," said Mr. Tighe.
In addition to members of the management team, the Arrowpoint board will include Michael Crall, formerly CEO of Equitas and President & Chief Executive of Argonaut Insurance Company; Edward Muhl, former Superintendent of Insurance for the State of New York, Commissioner of Insurance for the State of Maryland and President of the National Association of Insurance Commissioners; and Larry Simmons, former President & CEO of Royal & Sun Alliance Insurance Company of Canada and Western Assurance Company.