Arch announces $1.9bn cash dividend
Arch Capital, which last month saw chief executive officer Marc Grandisson depart, is to return $1.9 billion to its shareholders via special cash dividend, the Bermuda-based re/insurer company announced.
Arch, now led by Nicolas Papadopoulo, also promoted two veteran underwriters to lead its insurance group and its reinsurance and mortgage group.
Arch, which recorded a 27% jump to $978 million in net income in the third quarter of this year, said the special dividend, representing $5 per common share, is payable to shareholders on December 4 to shareholders of record on November 18.
“Arch is operating from a position of strength with a long track record of superior performance that is among the best in the insurance industry,” Papadopoulo said. “As part of our ongoing capital management responsibilities, the board and management have determined that a special dividend is the most effective way to return capital to shareholders at this time. This dividend underscores Arch’s robust capital position and our commitment to delivering value to our shareholders.”
The company also announced that it had promoted David Gansberg to president with primary accountability for Arch’s Insurance Group. Gansberg, who has been CEO of Arch’s Mortgage Group since 2019, now oversees Arch’s North American and International Insurance Operations.
Arch also promoted Maamoun Rajeh to president with primary responsibility for the mortgage and reinsurance groups. In this expanded role, Rajeh adds responsibility for Arch’s market-leading Mortgage Group while maintaining oversight of the Reinsurance Group he has led since 2017.
Papadopoulo said: “Maamoun and David have been integral to Arch’s success since 2001 and are crucial to our future performance. As we seek to further develop our deep bench of leaders, exposing David and Maamoun to new parts of our business will allow them to expand their knowledge while bringing their leadership and perspectives to other segments. They both have a keen understanding of our business and a legacy of developing talent. I look forward to seeing the impact they will have across the organisation.”
Rajeh said: “David and I have had a strong hand in formulating Arch’s successful strategy over the past 23 years. In this expanded role, I remain committed to maintaining Arch’s core principles and driving continued innovation, profitable growth and exceptional value for our clients and shareholders.”
Gansberg added: “Maamoun and I have worked alongside one another since we joined Arch in 2001, and we both have a track record of delivering excellent results to go along with our deep understanding and passion for this company and its employees. I’m excited to help continue to build upon Arch’s outstanding growth story.”
Before Gansberg’s tenure as CEO of Arch’s Mortgage Group, he served as President and CEO of Arch Mortgage Insurance Company. Prior to his work with the Mortgage Group, he was Executive Vice President and a director at Arch Re (US).
Prior to Rajeh’s role as Chairman and CEO of Arch’s Reinsurance Group, he held CEO positions at Arch Re Bermuda from 2014-2017 and at Arch Reinsurance Europe from 2012-2014. Rajeh joined Arch Re Bermuda as an underwriter in 2001 and advanced to hold several other leadership roles within Arch Re.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
