Arrowpoint Capital to Acquire US Businesses of Royal & Sun Alliance Insurance Group plc through Management Led Buyout.CHARLOTTE, N.C. -- Arrowpoint Capital Corp., a newly formed Delaware company owned and operated by the existing senior management and outside directors of Royal & SunAlliance USA (R&SA USA), today announced that it has entered into a definitive agreement to acquire all R&SA USA businesses currently owned by Royal & Sun Alliance Insurance Group plc of London. Arrowpoint Capital will focus on R&SA USA's operational objectives, including the continuation of its current management, financial and governance Governance makes decisions that define expectations, grant power, or verify performance. It consists either of a separate process or of a specific part of management or leadership processes. Sometimes people set up a government to administer these processes and systems. guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , to meet policyholder Policyholder An individual who owns an insurance policy. obligations. Arrowpoint Capital will be led by R&SA USA President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. John Tighe and his senior management team, who have successfully headed the operation since 2003. 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, who takes over as Chairman from William Shea William Alfred "Bill" Shea (June 21, 1907 – October 2, 1991) was a lawyer who is best known for his part in the return of National League professional baseball to New York City after the departure of the Brooklyn Dodgers and New York Giants after the 1957 season, and for the ; Edward Muhl, former Superintendent of Insurance for the State of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Commissioner of Insurance for the State of Maryland and President of the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. ; and Larry Simmons, former President & CEO of Royal & Sun Alliance Insurance Company of Canada and Western Assurance Company. Under the terms of the transaction, Arrowpoint Capital management will purchase 100% of the interests of Arrowpoint General Partnership, the US holding entity which currently owns the R&SA USA businesses, for $300 million of deferred consideration. With the closing of the transaction, the Group will contribute $287.5 million of additional capital to the US-regulated entities. "This is an excellent outcome for policyholders," said John Tighe. "It builds on the strong success we've achieved to date through our restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). efforts and provides us with a solid foundation for taking the business forward. "We'd like to thank Bill Shea for his support over the past two years and look forward to working with Mike Crall as we transition to our new company." Closing of the transaction, which is expected by year-end, is subject to regulatory and R&SA Group shareholder approvals. About Arrowpoint Capital Arrowpoint Capital Corp. is a newly formed company comprised of Royal & SunAlliance USA senior management and outside directors. The company will build on its experience in both run-off and active insurance businesses by focusing on operational objectives, including investment, claim and expense management, to satisfy policyholder obligations. |
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