Arachas Corporate Brokers specialises in corporate, SME and affinity scheme insurance brokerage. The business delivers exclusive insurance solutions to the Irish business community. Since being backed by Sovereign, Arachas has made three acquisitions and is now the leading independent insurance brokerage operating in Ireland.
Arachas was established in 2004. The business had grown rapidly through a number of acquisitions and wanted to step up its pace of growth.
The management team, keen to do an MBO and develop through further acquisitions, wanted an investment partner that could support these ambitions. Sovereign was able to deliver a transaction which met the different objectives of the individual shareholders and the management team. In tandem, a number of the shareholders of Arachas, who were not involved in the day-to-day management of the business, wanted to take a step back and realise the value that had been created in the business.
Within six months of Sovereign backing the MBO, Arachas was able to make its first acquisition, Capital Cover Group, a long-established insurance broker that brought a complementary product set to Arachas.
Later that year Kidd Insurances, one of Ireland’s longest established insurance brokers serving both the retail customer and broker community with its specialist affinity insurance product range, was acquired. In June 2018, Covercentre, a wholesale insurance broker that offers specialist property and commercial vehicle insurance, joined the Arachas.
The additions of Capital, Kidd and Covercentre have developed the Group’s product offering and further consolidates its position in the Irish market.
The combined group employs c.230 staff across its offices in Dublin, Cork and Waterford.
Sovereign continues to partner the management team to develop the business through strong organic growth and further acquisitions of like-minded brokers.
I felt the real opportunity was PE because I was obsessed with the future. Without doubt Sovereign were head and shoulders above everyone else, and for me it was because the focus was on build.
Donal Cronin / Founder / Arachas