ARC joins CRC Group: A significant enhancement in professional liability coverage
Deal News | May 02, 2025 | Re-Insurance News
CRC Group, a prominent wholesale specialty insurance distributor in North America, has acquired ARC Excess & Surplus, significantly enhancing its scale and capabilities. This acquisition strengthens CRC's ExecPro practice group, opening new avenues for delivering solutions. ARC, with over $1 billion in annual premiums, joins CRC Specialty while maintaining its leadership structure. Founded in 1986 by Christopher Cavallaro, ARC has evolved as a leading management and professional liability wholesale broker. ARC brings strong retail broker and carrier relationships to CRC, adding its six offices and expertise in property and casualty products. CRC's CEO, Dave Obenauer, highlights the acquisition as a major stride in building CRC's specialty capabilities, pointing to ARC's expertise as a key enhancement. Christopher Cavallaro and Michael Cavallaro of ARC echoed optimism about shared values and the strategic alignment this merger represents. Legal counsel for CRC was provided by Debevoise & Plimpton, while Kramer Levin Naftalis & Frankel LLP assisted ARC. Further advisory was delivered by Insurance Advisory Partners LLC, representing principal equityholders, Stone Point Capital LLC.
Sectors
- Insurance
- Finance and Investment
Geography
- North America – The acquisition involves CRC Group and ARC Excess & Surplus, which primarily operate in various locations across North America.
- United States – ARC is headquartered in New York and has operations in multiple states including California, Florida, Georgia, New Jersey, and Connecticut.
Industry
- Insurance – The article is centered around a deal involving wholesale specialty insurance distributors, CRC Group and ARC Excess & Surplus.
- Finance and Investment – Stone Point Capital LLC, a financial advisory and private equity firm, is involved as the majority equityholder of ARC, indicating the financial investment dimension of the acquisition.
Financials
- $1 billion – Annual premium of ARC Excess & Surplus before its acquisition by CRC Group.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CRC Group | Acquirer | Company | A North American wholesale specialty insurance distributor. |
| ARC Excess & Surplus, LLC | Target | Company | A large U.S.-based specialty wholesale insurance distributor with notable expertise in professional liability. |
| Christopher Cavallaro | Executive Chairman | Person | Founder and Executive Chairman of ARC Excess & Surplus. |
| Michael Cavallaro | CEO | Person | CEO of ARC Excess & Surplus. |
| Stone Point Capital LLC | Majority Equityholder | Company | Financial advisor and private equity firm with significant equity holdings in ARC. |
| Debevoise & Plimpton | Legal Advisor | Company | Provided legal counsel to CRC Group for the acquisition. |
| Kramer Levin Naftalis & Frankel LLP | Legal Advisor | Company | Served as legal advisor for ARC during the acquisition. |
| Insurance Advisory Partners LLC | Financial Advisor | Company | Exclusive financial advisor to the majority equityholders of ARC, Stone Point Capital. |