CRC buys ARC Excess & Surplus

CRC Group said Thursday it has bought wholesaler ARC Excess & Surplus LLC, adding more than $1 billion in premium volume. Private-equity firm Stone Point Capital LLC is a significant investor in both brokerages.

Terms were not disclosed.

Jericho, New York-based ARC — the 9th largest property/casualty wholesaler, according to Business Insurance’s most recent ranking — was founded in 1986 as a management and professional liability specialist and later expanded into other lines.

“The acquisition meaningfully strengthens the combined company’s ExecPro practice group,” a CRC statement said.

In 2023, ARC reported $1.04 billion in premium volume and $103.6 million in gross revenue. It derived 83% of its revenue from wholesale broking, 8.5% from underwriting management, and 8.5% from its managing general agent business.

It has more than 200 staff in six offices.

Charlotte, North Carolina-based CRC is the largest specialty intermediary in the United States, with more than $40 billion in premium volume, and the third largest wholesaler, with more than $18.5 billion in premium volume.

ARC will continue to operate under its own name and its existing leadership team, which includes Chris Cavallaro as executive chairman and Michael Cavallaro as CEO, CRC said.

Stone Point, a long-term investor in ARC, bought an 80% stake in CRC’s parent company last year.