Arch Capital share price recovers slightly

Arch Capital’s share price recovered slightly yesterday after dropping 6% in the wake of the departure of chief executive officer Marc Grandisson (pictured). 

Grandisson notified the board of directors on Friday, October 11 that he was stepping down as CEO and as a director and his retirement was announce on Monday, October 14. 

The share price of the high performing re/insurer dropped from $114.40 at the close of trading on Friday to $110.29 when the news was announced on Monday. The price  fell further to $107.47 by Wednesday and then recovered to $108.25 at the close of trading yesterday. 

The drop knocked about $3 billion off the Bermuda-based re/insurer’s market capitalisation, which was $43 billion on Friday. 

Grandisson, who had led the company since 2018, was succeeded by Nicolas Papadopoulo, formerly chief executive officer of Arch’s insurance group. He was also chief underwriting officer and president of Arch Capital.  

Papadopolou has big shoes to fill. Under Grandisson’s leadership, Arch’s share price rose from around $30 in 2018 to $114 this year while annual net profits improved from $507 million in 2018 to $4.8 billion in 2024. 

Intelligent Insurer reported yesterday that Papadopolou, a member of Bermuda:RE+ILS’s editorial board, will receive a base salary of $1.3 million and a target bonus of 200% of his base salary.

According to a US Securities and Exchange Commission (SEC) filing, Papadopoulo will be entitled to a prorated portion of his target bonus up to the termination notice date, and up to 18 months of continued major medical insurance coverage.

According to the filing, should Papadopoulo’s employment be terminated for "good reason" or without "cause," he will receive his base salary for the six-month notice period and for any remaining months beyond 24 while on garden leave.

Prior to joining the company, he held various positions at Sorema N.A. Reinsurance Group, a US subsidiary of Groupama, and he was also an insurance examiner with the Ministry of Finance, Insurance Department, in France. 

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