The acquisition would increase Arch Re’s distribution in the Asia-Pacific market
Arch Capital’s subsidiary Arch Reinsurance (Arch Re) has signed an agreement in principle to acquire a majority stake in Australian company Precision Marketing Asia Pacific (PMAP).
PMAP offers data-driven marketing solutions to banks, insurance companies, retailers and health care organisations across the Asia-Pacific region.
The company has offices in Australia, Indonesia, Hong Kong, Korea and Japan. It claims to have a network and the ability to extend through to adjacent markets in the region.
PMAP’s campaign factory analytical market platform draws data from an organisation’s multiple sources to create a single view of its customers’ personal information, product holdings and account history.
The solution coupled with its consulting services is claimed to provide better financial services marketing strategies for businesses.
Arch Worldwide Reinsurance Group chairman and CEO Maamoun Rajeh said: “Acquiring Precision Marketing Asia Pacific aligns with our strategy of selectively pursuing diverse speciality markets where we can apply our knowledge and expertise.
“Precision Marketing is well known for its highly analytical approach to multichannel distribution and product design, and I believe that Arch Re will benefit from its platform as we look to increase our life and A&H presence in Japan and other Asia-Pacific markets.”
The deal is subject to regulatory and other approvals
The deal is expected to increase Arch Re and PMAP’s distribution scale across life and accident and health (A&H) products in the Asian market.
Precision Marketing Asia Pacific CEO Keith Lowry said: “After many years operating as a private enterprise, the Board of Precision Marketing recognise the importance of increased growth capital to accelerate scale in the business and deliver greater value to our distribution partners in Japan.
“This investment by Arch Capital Group Ltd. will bring necessary financial resources to take the business to the next level.”
Last November, Arch Capital completed the acquisition of Barbican Group which includes Barbican Managing Agency Limited, Lloyd’s Syndicate 1955, Castel Underwriting Agencies Limited (Castel) and other associated entities.
Barbican has been consolidated into Arch’s insurance and reinsurance operations. Castel will operate independently with financial support from Arch for its growth.