Arch Insurance North America has agreed to acquire Premier Dealer Holding Corp, expanding the Bermudian-based insurer’s position in the automotive finance and insurance market.

Premier Dealer Services, based in Dublin, Ohio, provides automotive protection products and services to dealerships, including administration, technology and dealer-training support. Financial terms were not disclosed.

The business is expected to continue operating as a stand-alone company within Arch Insurance’s consumer division after the transaction closes, which is expected by the end of the year, subject to regulatory approvals.

Arch Insurance North America is part of Arch Capital Group Ltd, the Bermudian-based re/insurer and mortgage insurer.

Matt Shulman, chief executive of Arch Insurance North America, said the acquisition would combine Arch’s specialty-insurance expertise with PDS’s dealer relationships and technology.

“PDS has built a strong business with an experienced team, differentiated technology and extensive dealer relationships,” Mr Shulman said. “We know the company well. Bringing PDS and Arch together will strengthen our capabilities in the automotive F&I market and create new opportunities to serve our customers and partners.”

The deal builds on an existing relationship between the companies. Arch already writes automotive F&I products through its warranty and lender solutions operation, which serves dealerships, lenders, administrators and vehicle manufacturers.

F&I products are typically offered to customers when they purchase vehicles and can include service contracts, warranties, guaranteed asset protection and other protection products connected to financing or leasing.

The acquisition gives Arch a larger presence in the dealer-facing and administrative side of the market, rather than solely providing insurance capacity behind products sold through third parties.

John Topits, PDS’s CEO, said joining Arch would allow it to keep investing in its products and technology while preserving continuity for dealers and agents.

“Arch has been a trusted partner to Premier for many years, and we know and respect their team,” he said.