CRC Group acquires specialty wholesale broker ARC Excess & Surplus

By Mia MacGregor

May 1 - (The Insurer) - CRC Group has confirmed its acquisition of Long Island-based ARC Excess & Surplus, which has more than $1 billion in annual premiums and will join CRC while continuing to operate under its current leadership team.

The Insurer broke the news in late February that CRC was in talks to acquire ARC in a potential $500 million deal that would combine the two Stone Point Capital-backed wholesalers.

CRC stated that ARC significantly enhances its scale and capabilities, and bolsters the combined company's ExecPro practice group.

Established in 1986, ARC began as a boutique management and professional liability wholesale broker and has since expanded to offer property and casualty products across New York, California, Florida, Georgia, New Jersey and Connecticut.

ARC maintains relationships with over 250 carrier partners and serves over 2,000 retail brokers nationwide.

"This acquisition marks a major step forward as we continue to build CRC's specialty capabilities," said CRC CEO Dave Obenauer. "ARC's deep expertise in professional liability, strong retail and carrier relationships, and proven leadership will enhance our ability to deliver best-in-class solutions across the industry.”

Michael Cavallaro, CEO of ARC, added: "CRC's national scale, technology-driven platform, and commitment to excellence align perfectly with our vision for ARC.”

Debevoise & Plimpton served as legal counsel to CRC, and Kramer Levin Naftalis & Frankel served as legal counsel to ARC. Insurance Advisory Partners served as exclusive financial advisor to certain funds managed by Stone Point Capital, the majority equityholders of ARC.