Banks scoops windfall as reinsurer buys his broking group

Arron Banks has scooped a windfall after Arch Reinsurance revealed its plans to acquire his companies.

Banks is understood to be the majority shareholder - around 55% - in a deal worth an estimated £100m.

Arch will buy his companies, including groups Somerset Bridge and Southern Rock.

The move boosts Arch’s UK motor presence.

Through the acquisition, it will gain the MGA, distribution capabilities through direct and aggregator channels, an affiliated insurer and fully integrated claims operation.

Arch Re head of specialty William Soares said: “Somerset has been a client of Arch Re for 11 years, which gives us significant insight and confidence in the business and the team.

”This proposed acquisition supports our strategy of diversifying our sources of premium and allows for collaborative cycle management of the class over time.

“This transaction also anchors our UK motor coinsurance and reinsurance capacity with a fully integrated platform. Somerset brings strong product and distribution capabilities.

”Coupled with Arch’s analytical capabilities and capital management, the combination of our two firms will provide an enhanced proposition to our customers, stakeholders and third-party capital providers.”

Banks founded Brightside before moving on to set up the new broking group, which includes the brand GoSkippy.