ARCH AGREES €480M DEAL TO BY 29% STAKE IN COFACE

Arch Capital Group has agreed to buy a 29.5% stake in French trade credit insurer Coface. On Tuesday, the Bermuda-based insurer announced it is to buy the stake in Coface from French bank Natixis in a deal valued at around €480m. Arch has indicated that it does not intend to seek control of the trade credit insurer for a period of 12 months after the closing of the transaction. Commenting on the deal, Arch’s chief executive officer Marc Grandisson said: “This is a long-term, strategic investment in Coface, and fits with Arch’s efforts to develop uncorrelated sources of underwriting income.” Moody’s said the acquisition would be credit positive for Coface as it provides a strong platform for Coface to expand in the US market. As part of the transaction, Natixis’ seven representatives on Coface’s board of directors will resign and be replaced by four Arch nominees and a new independent board member.