Arch Capital Group agrees $521 million Coface deal

Arch Capital Group | February 25, 2020

Arch Capital Group agrees $521 million Coface deal
Natixis SA agreed to sell most of its remaining stake in credit insurer Coface SA to Arch Capital Group in a 480 million-euro (US$521 million) deal that may allow the French lender to return more excess cash to shareholders. Arch Capital, a US specialty and mortgage insurer, will acquire 29.5% of Coface at 10.70 euros a share, Natixis said Tuesday. That’s a discount of 6% to Monday’s closing price. The French bank will keep its remaining 12.2% stake as a financial investment. Natixis took Coface public in 2014, but the shares barely budged from their offering price of 10.40 euros since then. The disposal will result in a goodwill impairment of about 100 million euros in the first quarter, while strengthening a measure of the bank’s capital strength by 35 basis points.

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Insurance is a contract of ‘utmost good faith’. Therefore, information symmetry and trust management are the core requirements for sustainability of the business. But the changes in today’s demographics and the growth in digital interfaces.

Spotlight

Insurance is a contract of ‘utmost good faith’. Therefore, information symmetry and trust management are the core requirements for sustainability of the business. But the changes in today’s demographics and the growth in digital interfaces.

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